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    Question

    Which of the following is not true about financial inclusion in India?

    A RBI directions to open ‘no-frill accounts’ extended basic banking services to public Correct Answer Incorrect Answer
    B Relaxed KYC norms made opening of bank account easier Correct Answer Incorrect Answer
    C Supervisory Review Process were simplified in Business Correspondence (BC) model Correct Answer Incorrect Answer
    D SHG-Bank linkage programme was promoted by banks Correct Answer Incorrect Answer
    E All of the above are correct Correct Answer Incorrect Answer

    Solution

    RBI had introduced 'no-frills' accounts in 2005 to provide basic banking facilities to poor and promote financial inclusion. The accounts could be maintained without or with very low minimum balance.

    With a view to easing difficulties faced by common persons while opening bank accounts and during periodic updating, guidelines on KYC have been simplified by RBI

    Supervisory Review Process is related to implementation of Basel II framework in the bank and has nothing to do with BC model

    SHG-Bank linkage programme was launched by NABARD in 1992 and as per lastest estimates of NABARD about 80 lakhs SHGs have been financed by banks covering about 10 crore households.

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