Financial Inclusion in Economic & Social Issues : Practice MCQ Questions & Answers with Explanations

The correct answer is B: IPPB (India Post Payments Bank).

IPPB was launched by the Government of India to provide financial inclusion services through the extensive post office network. It operates under the Department of Posts, Ministry of Communications, and was inaugurated by Prime Minister Narendra Modi on September 1, 2018.

IPPB leverages postmen and Gramin Dak Sevaks to deliver banking and financial services at citizens' doorsteps, especially in rural and remote areas. Services include savings accounts (no minimum balance), money transfers, utility bill payments, insurance products, and micro-ATM services.

Key facts:

• Present in 1.55 lakh+ post offices; 1.35 lakh+ in rural areas.
• Uses Aadhaar-enabled Payment Systems (AePS), QR code-based biometric authentication, and UPI integration.
• Started with 650 branches; 100% owned by the Government of India.
• Assists in Direct Benefit Transfer (DBT) implementation to ensure subsidies reach beneficiaries without leakages.
• Operates on a paperless banking model promoting digital transactions and financial literacy.