MONEY AND BANKING (Part – I)

Small Industries Development Bank of India (SIDBI), set up on 2nd April, 1990 under an act of Indian Parliament, acts as the principal financial institution for promotion, financing and development of the Micro, Small and Medium Enterprises (MSME) sector as well as for coordination of functions of institution engaged in similar activities. SIDBI is headquartered at Lucknow and having its offices all over the country.

Small Industries Development Bank of India (SIDBI), set up on 2nd April, 1990 under an act of Indian Parliament, acts as the principal financial institution for promotion, financing and development of the Micro, Small and Medium Enterprises (MSME) sector as well as for coordination of functions of institution engaged in similar activities. SIDBI is headquartered at Lucknow and having its offices all over the country.

Small Industries Development Bank of India (SIDBI), set up on 2nd April, 1990 under an act of Indian Parliament, acts as the principal financial institution for promotion, financing and development of the Micro, Small and Medium Enterprises (MSME) sector as well as for coordination of functions of institution engaged in similar activities. SIDBI is headquartered at Lucknow and having its offices all over the country.

Small Industries Development Bank of India (SIDBI) is headquartered at Lucknow. SIDBI is mandated to serve as the principal financial institution for executing the triple agenda of promotion, financing and development of MSME sector. Other pairs are correctly matched. Allahabad Bank was merged with Indian Bank in 2020.

Small Industries Development Bank of India (SIDBI), set up on 2nd April, 1990 under an act of Indian Parliament, acts as the principal financial institution for promotion, financing and development of the Micro, Small and Medium Enterprises (MSME) sector as well as for coordination of functions of institution engaged in similar activities. SIDBI is headquartered at Lucknow and having its offices all over the country.

'Financial Inclusion' is a method of offering banking and financial services to individuals. It aims to include everybody in society by giving them basic financial services regardless of their income or savings. It focuses on providing financial solutions to the economically underprivileged. Hence, all of the given statements are correct and option (d) is the correct answer.

Extending financial services to poor population, unlocking the door of growth potential of weaker section of the society and extending financial sector into rural areas are objectives of financial inclusion. The objective of financial inclusion includes expanding the banking infrastructure in underserved areas. Hence, option (c) is the correct answer.

According to the C. Rangarajan Committee on Financial Inclusion, financial inclusion is the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost. Low income, illiteracy and lack of banks' branches all of these are hindrances in the process of financial inclusion.

The Committee on Financial Inclusion was actually constituted by the Government of India (Chairman Dr. C. Rangarajan) on June 26, 2006 to prepare a strategy of financial inclusion. The Committee submitted its final Report on January 4, 2008. The Report viewed financial inclusion as a comprehensive and holistic process of ensuring access to financial services and timely and adequate credit, particularly by vulnerable groups such as weaker sections and low income groups at an affordable cost. Financial inclusion, therefore, according to the Committee, should include access to mainstream financial products such as bank accounts, credit, remittances and payment services, financial advisory services and insurance facilities

The Committee on Financial Inclusion was actually constituted by the Government of India (Chairman Dr. C. Rangarajan) on June 26, 2006 to prepare a strategy of financial inclusion. The Committee submitted its final Report on January 4, 2008. The Report viewed financial inclusion as a comprehensive and holistic process of ensuring access to financial services and timely and adequate credit, particularly by vulnerable groups such as weaker sections and low income groups at an affordable cost. Financial inclusion, therefore, according to the Committee, should include access to mainstream financial products such as bank accounts, credit, remittances and payment services, financial advisory services and insurance facilities