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Vast numbers of Indian citizens without bank accounts live in rural areas, are financially and functionally illiterate, and have little experience with technology. A research study was conducted in a particular area in which electronic wage payments in Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) are meant to go directly to the poor. It was observed that recipients often assume that the village leader needs to mediate the process, as was the case under the previous paper-based system. Among households under this research study area who claimed to have at least one bank account, over a third reported still receiving MGNREGS wages in cash directly from a village leader.

Q. What is the most logical, rational and crucial message that is implied in the above passage? 
  • a)
    MGNREGS should be extended only to those who have a bank account.  
  • b)
    The paper-based system of payments is more efficient than electronic payment in the present scenario.  
  • c)
    The goal of electronic wage payments was not to eliminate mediation by village leaders.  
  • d)
    It is essential to provide financial literacy to the rural poor. 
Correct answer is option 'D'. Can you explain this answer?
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Vast numbers of Indian citizens without bank accounts live in rural ar...
The correct answer is D as the most logical, rational and crucial message that is implied in the above passage is It is essential to provide financial literacy to the rural poor.
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Vast numbers of Indian citizens without bank accounts live in rural ar...


Financial Literacy is Essential for the Rural Poor

Financial literacy plays a crucial role in ensuring the successful implementation of electronic wage payment systems like the one in the MGNREGS. Here's why:

1. Lack of Bank Accounts
- Many Indian citizens, especially in rural areas, do not have bank accounts. This hinders their ability to receive electronic payments directly.
- Having a bank account is essential for accessing various government schemes and benefits, including MGNREGS.

2. Misconceptions about Mediation
- Due to a lack of financial literacy and experience with technology, many recipients of MGNREGS wages still believe that village leaders need to mediate the payment process.
- This misconception leads to delays, inefficiencies, and potential opportunities for corruption.

3. Importance of Financial Literacy
- Providing financial literacy training to the rural poor is crucial for empowering them to handle electronic payments independently.
- Education on basic financial concepts, such as the importance of bank accounts and how electronic payments work, can help bridge the gap between technology and rural communities.

4. Addressing Functional Illiteracy
- In addition to financial literacy, addressing functional illiteracy is also essential. Many individuals in rural areas may struggle with reading and understanding digital interfaces.
- Simple and user-friendly training programs can help improve their ability to navigate technology and access their entitlements.

In conclusion, promoting financial literacy among the rural poor is vital for the successful transition to electronic payment systems like MGNREGS. By empowering individuals with the necessary knowledge and skills, we can enhance financial inclusion, reduce dependency on intermediaries, and ensure more efficient delivery of government benefits.
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Read the information given below carefully and answer the following question.Financial inclusion plays a crucial role in inclusive development and sustainable prosperity as is being increasingly recognised and acknowledged globally. Large segment of population need to be part of formal payment system and financial markets. Financial inclusion would also broaden and deepen financial savings and lead to higher economic development.Previous initiatives: While financial sector policies in India have long been driven by the objective of increasing penetration and outreach, the goal of inclusion has eluded us. About 41 per cent of adult population remain unbanked and the number of loan account covers only 14 percent of adult population. The previous initiatives included (i) the expansion of network of cooperative banks to provide credit to agriculture and saving facilities in rural areas, (ii) nationalism of bank in 1969 and expansion of branches and (iii) creation ofan elaborate framework of priority sector lending with mandated targets as part of a strategy to meet the savings and credit needs of large section of the Indian population who had no access to institutional finance. Given the sheer enormity of the challenge, however the outcomes of these efforts have so far been mixed.Recent initiatives/out of the box approaches: Recent initiative include (i) “no frill” account for retail purpose; (ii) simplified KYC (Know Your Customer) (iii) Credit counselling centre facilities; (iv) use of NGOs and formation of SHGs; (v) Kisan credit cards service and (vi) extension of smart cards. The finance Minister in his Budget Speech of 2007-08 also laid down provision for funding of financial inclusion goals. The Rangarajan Committee also spelt out priorities for meeting financial inclusion objectives. Two of the more important approaches in the recent times included the use of technology such as smart cards and mobile telephone banking. The potential for their spread can be vast especially in combination with banking correspondence approach launched recently.New entry and competition: In addition, new competition and entry also play crucial roles, as is evident from the global experience. Two particular initiatives have included the role of Micro Financial Institutions (MFIs) and Non-Bank Finance Companies (NBFCs). MFI activities have surged in recent years, but has come under scrutiny and regulation. Services expanded at a fast rate, providing access on better terms than the alternatives of traditionalmoney lenders. However, better regulation is also needed. On NBFCs, gold pawn establishment have also provided alternate access and are fast expanding in urban and semi-urban settings. As far as caps on interest rates are concerned, as in case of other products, ‘subsidies’ in the form of low interest are often an inhibitor of access to services because of rationing and misuse.Financial Literacy: Any policy initiative seeking to afford greater access to financial services to financial services to a large segment of the population must necessarily address bridging the existing knowledge gap in financial education and literacy. Over the last decade or so, researcher all over the world, especially in the developed countries, have, therefore, started to study and explore whether individuals are wellequipped to make financial decisions. Financial education and literacy assumes urgency in any given scenario.Q.Which of the following would be closest to the meaning of term financial inclusion?

Financial inclusion plays a crucial role in inclusive development and sustainable prosperity as is being increasingly recognised and acknowledged globally. Large segment of population need to be part of formal payment system and financial markets. Financial inclusion would also broaden and deepen financial savings and lead to higher economic development.Previous initiatives: While financial sector policies in India have long been driven by the objective of increasing penetration and outreach, the goal of inclusion has eluded us. About 41 per cent of adult population remain unbanked and the number of loan account covers only 14 percent of adult population. The previous initiatives included (i) the expansion of network of cooperative banks to provide credit to agriculture and saving facilities in rural areas, (ii) nationalism of bank in 1969 and expansion of branches and (iii) creation ofan elaborate framework of priority sector lending with mandated targets as part of a strategy to meet the savings and credit needs of large section of the Indian population who had no access to institutional finance. Given the sheer enormity of the challenge, however the outcomes of these efforts have so far been mixed.Recent initiatives/out of the box approaches: Recent initiative include (i) “no frill” account for retail purpose; (ii) simplified KYC (Know Your Customer) (iii) Credit counselling centre facilities; (iv) use of NGOs and formation of SHGs; (v) Kisan credit cards service and (vi) extension of smart cards. The finance Minister in his Budget Speech of 2007-08 also laid down provision for funding of financial inclusion goals. The Rangarajan Committee also spelt out priorities for meeting financial inclusion objectives. Two of the more important approaches in the recent times included the use of technology such as smart cards and mobile telephone banking. The potential for their spread can be vast especially in combination with banking correspondence approach launched recently.New entry and competition: In addition, new competition and entry also play crucial roles, as is evident from the global experience. Two particular initiatives have included the role of Micro Financial Institutions (MFIs) and Non-Bank Finance Companies (NBFCs). MFI activities have surged in recent years, but has come under scrutiny and regulation. Services expanded at a fast rate, providing access on better terms than the alternatives of traditionalmoney lenders. However, better regulation is also needed. On NBFCs, gold pawn establishment have also provided alternate access and are fast expanding in urban and semi-urban settings. As far as caps on interest rates are concerned, as in case of other products, ‘subsidies’ in the form of low interest are often an inhibitor of access to services because of rationing and misuse.Financial Literacy: Any policy initiative seeking to afford greater access to financial services to financial services to a large segment of the population must necessarily address bridging the existing knowledge gap in financial education and literacy. Over the last decade or so, researcher all over the world, especially in the developed countries, have, therefore, started to study and explore whether individuals are wellequipped to make financial decisions. Financial education and literacy assumes urgency in any given scenario.Q.Which of the following is not one of the previous initiatives for financial inclusion?

Financial inclusion plays a crucial role in inclusive development and sustainable prosperity as is being increasingly recognised and acknowledged globally. Large segment of population need to be part of formal payment system and financial markets. Financial inclusion would also broaden and deepen financial savings and lead to higher economic development.Previous initiatives: While financial sector policies in India have long been driven by the objective of increasing penetration and outreach, the goal of inclusion has eluded us. About 41 per cent of adult population remain unbanked and the number of loan account covers only 14 percent of adult population. The previous initiatives included (i) the expansion of network of cooperative banks to provide credit to agriculture and saving facilities in rural areas, (ii) nationalism of bank in 1969 and expansion of branches and (iii) creation ofan elaborate framework of priority sector lending with mandated targets as part of a strategy to meet the savings and credit needs of large section of the Indian population who had no access to institutional finance. Given the sheer enormity of the challenge, however the outcomes of these efforts have so far been mixed.Recent initiatives/out of the box approaches: Recent initiative include (i) “no frill” account for retail purpose; (ii) simplified KYC (Know Your Customer) (iii) Credit counselling centre facilities; (iv) use of NGOs and formation of SHGs; (v) Kisan credit cards service and (vi) extension of smart cards. The finance Minister in his Budget Speech of 2007-08 also laid down provision for funding of financial inclusion goals. The Rangarajan Committee also spelt out priorities for meeting financial inclusion objectives. Two of the more important approaches in the recent times included the use of technology such as smart cards and mobile telephone banking. The potential for their spread can be vast especially in combination with banking correspondence approach launched recently.New entry and competition: In addition, new competition and entry also play crucial roles, as is evident from the global experience. Two particular initiatives have included the role of Micro Financial Institutions (MFIs) and Non-Bank Finance Companies (NBFCs). MFI activities have surged in recent years, but has come under scrutiny and regulation. Services expanded at a fast rate, providing access on better terms than the alternatives of traditionalmoney lenders. However, better regulation is also needed. On NBFCs, gold pawn establishment have also provided alternate access and are fast expanding in urban and semi-urban settings. As far as caps on interest rates are concerned, as in case of other products, ‘subsidies’ in the form of low interest are often an inhibitor of access to services because of rationing and misuse.Financial Literacy: Any policy initiative seeking to afford greater access to financial services to financial services to a large segment of the population must necessarily address bridging the existing knowledge gap in financial education and literacy. Over the last decade or so, researcher all over the world, especially in the developed countries, have, therefore, started to study and explore whether individuals are wellequipped to make financial decisions. Financial education and literacy assumes urgency in any given scenario.Q.What is meant by the term financial literacy?

Read the information given below carefully and answer the following question.Rural India face serious shortages – power, water, health facilities, roads, etc. – these are known and recognized. However, the role of technology in solving these and other problems is barely acknowledged and the actual availability of technology in ruralareas is marginal. The backbone of the rural economy is agriculture; which also provides sustenance to over half the country’s population. The “Green Revolution” of the 1970s was, in fact, powered by the scientific work in various agricultural research institutions. Which some fault the Green Revolution for excessive exploitation of water and land resources through overuse of fertilizers, it did bring about a wheat surplus and prosperity in certain pockets of the country. In rural India today, there is a dire inadequacy of both science (i.e. knowledg e) and technology (which derives from science and manifests itself in physical form). The scope to apply technology to both farm and non-farm activities in rural areas is huge, as are the potential benefits. In fact, crop yields are far lower than what they are in demonstration farms, where science and technology are more fully applied. Technologies that reduce power consumption of pumps are vital; unfortunately, their use is minimal, since agricultural power is free or largely subsidized. Similarly, there is little incentive to optimize-through technology or otherwise-water use, especially in irrigated areas (a third of total arable lan d), given employment and incomes, but at present deployment of technology is marginal. Cold storage and cold-chains for transportation to market is of great importance for many agricultural products-particularly, fruits and vegetables-but are non-existent. These are clearly technologies with an immediate return on investment, and benefits for all; the farmer, the end-consumer, thetechnology provider. However, regulatory and structural barriers are holding back investments. Power is a key requirement in rural areas, for agricultural as well as domestic uses. Technology can provide reliable power at comparatively low cost in a decentralized manner. However, this needs to be upgraded and scaled in a big way, with emphasis on renewable and nonpolluting technologies. Reliable and low cost means of transporting goods and people is an essential need for rural areas. The bullock-cart and the tractor-trailer are present vehicles of choice. Surely, technology can provide a better, cheaper and more efficient solution? Information related to commodity prices, agricultural practices, weather, etc., are crucial for the farmer. Technology can provide these through technology mobile phones, which is a proven technology; however, the challenge to ensure connectivity remains. Thus, there is a pressing need for technology as currently economic growth-though skewed and iniquitous-has created an economically attractive market in rural India.Q.What has hampered investment in post-harvest technologies?

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Vast numbers of Indian citizens without bank accounts live in rural areas, are financially and functionally illiterate, and have little experience with technology. A research study was conducted in a particular area in which electronic wage payments in Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) are meant to go directly to the poor. It was observed that recipients often assume that the village leader needs to mediate the process, as was the case under the previous paper-based system. Among households under this research study area who claimed to have at least one bank account, over a third reported still receiving MGNREGS wages in cash directly from a village leader.Q. What is the most logical, rational and crucial message that is implied in the above passage?a)MGNREGS should be extended only to those who have a bank account. b)The paper-based system of payments is more efficient than electronic payment in the present scenario. c)The goal of electronic wage payments was not to eliminate mediation by village leaders. d)It is essential to provide financial literacy to the rural poor.Correct answer is option 'D'. Can you explain this answer?
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Vast numbers of Indian citizens without bank accounts live in rural areas, are financially and functionally illiterate, and have little experience with technology. A research study was conducted in a particular area in which electronic wage payments in Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) are meant to go directly to the poor. It was observed that recipients often assume that the village leader needs to mediate the process, as was the case under the previous paper-based system. Among households under this research study area who claimed to have at least one bank account, over a third reported still receiving MGNREGS wages in cash directly from a village leader.Q. What is the most logical, rational and crucial message that is implied in the above passage?a)MGNREGS should be extended only to those who have a bank account. b)The paper-based system of payments is more efficient than electronic payment in the present scenario. c)The goal of electronic wage payments was not to eliminate mediation by village leaders. d)It is essential to provide financial literacy to the rural poor.Correct answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Vast numbers of Indian citizens without bank accounts live in rural areas, are financially and functionally illiterate, and have little experience with technology. A research study was conducted in a particular area in which electronic wage payments in Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) are meant to go directly to the poor. It was observed that recipients often assume that the village leader needs to mediate the process, as was the case under the previous paper-based system. Among households under this research study area who claimed to have at least one bank account, over a third reported still receiving MGNREGS wages in cash directly from a village leader.Q. What is the most logical, rational and crucial message that is implied in the above passage?a)MGNREGS should be extended only to those who have a bank account. b)The paper-based system of payments is more efficient than electronic payment in the present scenario. c)The goal of electronic wage payments was not to eliminate mediation by village leaders. d)It is essential to provide financial literacy to the rural poor.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Vast numbers of Indian citizens without bank accounts live in rural areas, are financially and functionally illiterate, and have little experience with technology. A research study was conducted in a particular area in which electronic wage payments in Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) are meant to go directly to the poor. It was observed that recipients often assume that the village leader needs to mediate the process, as was the case under the previous paper-based system. Among households under this research study area who claimed to have at least one bank account, over a third reported still receiving MGNREGS wages in cash directly from a village leader.Q. What is the most logical, rational and crucial message that is implied in the above passage?a)MGNREGS should be extended only to those who have a bank account. b)The paper-based system of payments is more efficient than electronic payment in the present scenario. c)The goal of electronic wage payments was not to eliminate mediation by village leaders. d)It is essential to provide financial literacy to the rural poor.Correct answer is option 'D'. Can you explain this answer?.
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What is the most logical, rational and crucial message that is implied in the above passage?a)MGNREGS should be extended only to those who have a bank account. b)The paper-based system of payments is more efficient than electronic payment in the present scenario. c)The goal of electronic wage payments was not to eliminate mediation by village leaders. d)It is essential to provide financial literacy to the rural poor.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Vast numbers of Indian citizens without bank accounts live in rural areas, are financially and functionally illiterate, and have little experience with technology. A research study was conducted in a particular area in which electronic wage payments in Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) are meant to go directly to the poor. It was observed that recipients often assume that the village leader needs to mediate the process, as was the case under the previous paper-based system. Among households under this research study area who claimed to have at least one bank account, over a third reported still receiving MGNREGS wages in cash directly from a village leader.Q. What is the most logical, rational and crucial message that is implied in the above passage?a)MGNREGS should be extended only to those who have a bank account. b)The paper-based system of payments is more efficient than electronic payment in the present scenario. c)The goal of electronic wage payments was not to eliminate mediation by village leaders. d)It is essential to provide financial literacy to the rural poor.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Vast numbers of Indian citizens without bank accounts live in rural areas, are financially and functionally illiterate, and have little experience with technology. A research study was conducted in a particular area in which electronic wage payments in Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) are meant to go directly to the poor. It was observed that recipients often assume that the village leader needs to mediate the process, as was the case under the previous paper-based system. Among households under this research study area who claimed to have at least one bank account, over a third reported still receiving MGNREGS wages in cash directly from a village leader.Q. What is the most logical, rational and crucial message that is implied in the above passage?a)MGNREGS should be extended only to those who have a bank account. b)The paper-based system of payments is more efficient than electronic payment in the present scenario. c)The goal of electronic wage payments was not to eliminate mediation by village leaders. d)It is essential to provide financial literacy to the rural poor.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Vast numbers of Indian citizens without bank accounts live in rural areas, are financially and functionally illiterate, and have little experience with technology. A research study was conducted in a particular area in which electronic wage payments in Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) are meant to go directly to the poor. It was observed that recipients often assume that the village leader needs to mediate the process, as was the case under the previous paper-based system. Among households under this research study area who claimed to have at least one bank account, over a third reported still receiving MGNREGS wages in cash directly from a village leader.Q. What is the most logical, rational and crucial message that is implied in the above passage?a)MGNREGS should be extended only to those who have a bank account. b)The paper-based system of payments is more efficient than electronic payment in the present scenario. c)The goal of electronic wage payments was not to eliminate mediation by village leaders. d)It is essential to provide financial literacy to the rural poor.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Vast numbers of Indian citizens without bank accounts live in rural areas, are financially and functionally illiterate, and have little experience with technology. A research study was conducted in a particular area in which electronic wage payments in Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) are meant to go directly to the poor. It was observed that recipients often assume that the village leader needs to mediate the process, as was the case under the previous paper-based system. Among households under this research study area who claimed to have at least one bank account, over a third reported still receiving MGNREGS wages in cash directly from a village leader.Q. What is the most logical, rational and crucial message that is implied in the above passage?a)MGNREGS should be extended only to those who have a bank account. b)The paper-based system of payments is more efficient than electronic payment in the present scenario. c)The goal of electronic wage payments was not to eliminate mediation by village leaders. d)It is essential to provide financial literacy to the rural poor.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice UPSC tests.
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