Which of the above events can be considered as steps taken to achieve financial inclusion in India?

Correct Answer: b) 1, 2 and 3

Explanation:

Financial inclusion refers to the process of ensuring access to financial services and timely and adequate credit for vulnerable groups such as weaker sections and low-income groups at an affordable cost. All three events mentioned in the question are significant steps taken to achieve financial inclusion in India. Here’s how:

1. Nationalisation of Banks (1969 and 1980):

– The nationalisation of banks was a major step to bring banking services to the masses, especially in rural and semi-urban areas. Before nationalisation, banking services were largely concentrated in urban areas and catered to the needs of industrialists and wealthy individuals. Nationalisation ensured that banks focused on priority sectors like agriculture, small-scale industries, and rural development, thereby promoting financial inclusion.

2. Formation of Regional Rural Banks (RRBs) (1975):

– RRBs were established to provide credit and other financial services to small and marginal farmers, agricultural laborers, and rural artisans. These banks were specifically designed to cater to the rural population, which was underserved by commercial banks. This was a direct step toward improving financial inclusion in rural areas.

3. Adoption of Villages by Bank Branches:

– Under various schemes, banks were encouraged to adopt villages to provide banking services and promote financial literacy. This initiative aimed to bring unbanked rural areas into the formal banking system, thereby enhancing financial inclusion.

Hence, the correct answer is b) 1, 2 and 3.