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The correct answer is the Lending of money to the public.

Key Points

• The lending of money to the public is not the function of RBI.
• Reserve Bank of India
• The Reserve Bank of India is India's central bank and regulatory body under the jurisdiction of the Ministry of Finance, Government of India.
• It is responsible for the issue and supply of the Indian rupee and the regulation of the Indian banking system.
• Key functions of RBI are, banker's bank, the custodian of the foreign reserve, controller of credit, and managing the printing and supply of currency notes in the country.
• Major functions of the RBI are as follows:
• Issue of Bank Notes
• Banker to Government
• Custodian of Cash Reserves of Commercial Banks
• Custodian of Country's Foreign Currency Reserves
• Lender of Last Resort
• Central Clearance and Accounts Settlement
• Controller of Credit (Controlling Inflation) Banking Supervision

The correct answer is Shrinking of banking infrastructure.

Key Points

• Financial inclusion:
• Financial inclusion may be stated as the process of ensuring access to financial services and timely and adequate credit where required by vulnerable groups such as weaker sections and low-income groups at an affordable cost.
• In a country like India, financial inclusion is a critical part of the growth process.
• Since independence, the combined efforts of successive governments, regulatory institutions, and civil society have helped in increasing the financial inclusion net in the country.
• The state of financial inclusion has repaired considerably over time.
• However, financial inclusion hasn’t reached the poorest of the poor and there exist many stoppages and challenges which need immediate attention.
• Thus, there exists both a great need and the believable to tap into the unbanked population and bring them into the financial net.
• Objective of financial inclusion
• ​To extend financial services to poor population.
• To unlock the door of growth potential of weaker section.
• To extend financial sector into rural areas.

The correct answer is The Department of Financial Services (DFS).

Key Points

• The Department of Financial Services (DFS) is mainly responsible for policy issues relating to Public Sector Banks (PSBs).
• The Department of Financial Services (DFS) is responsible for issues relating to
• Public Sector Banks,
• Development Financial Institutions (NABARD, NHB, EXIM, SIDBI etc.)
• Agricultural Credit,
• Public Sector Insurance Companies
• Pension Reforms

Important Points

• Department of Financial Services (DFS)
• It is one of the five departments of the Ministry of Finance.
• It is responsible for Initiatives and reforms relating to Financial Inclusion, Social Security, and Insurance as a Risk Transfer mechanism.
• He also observes the credit flow to key sectors of the economy/farmers/common man.
• The key flagship schemes being currently run/managed by DFS are Pradhan Mantri Jan Dhan Yojana, Pradhan Mantri Suraksha Bima Yojana, and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Mudra Yojana (PMMY) etc.

Additional Information

• Financial Intelligence Unit-India (FIU-IND)
• FIU-IND has launched Project FinNet - Financial Intelligence Network to "adopt appropriate technology to collect, analyze, and disseminate valuable financial information to combat money laundering and related crimes."
• Targeted Public Distribution System (TPDS)
• ​TPDS was launched by gov in June 1997 with a focus on the poor.
• Under TPDS, beneficiaries were divided into Households below the poverty line or BPL and Households above the poverty line or APL.
• Centralized Public Grievance Redressal and Monitoring System (CPGRAMS)
• It is an online platform available to the citizens 24x7 to lodge their grievances to the public authorities on any subject related to service delivery.
• It is a single portal connected to all the Ministries/Departments of the Government of India and States.
• It comes under the Department of Administrative Reforms and Public Grievances (DARPG).

The correct answer is Foreign Exchange Management Act.

Key Points

• FEMA stands for Foreign Exchange Management Act.
• Foreign Exchange Management Act is an act to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and promoting the orderly development and maintenance of the foreign exchange market in India.
• This act extends to the whole of India.
• The act was passed in parliament on 29^th December 1999.
• The act replaced the existing Foreign Exchange Regulation Act (FERA).
• Offenses involving foreign exchange are now classified as civil offences under Foreign Exchange Management Act.
• It also prepared the way for the passage of the Money Laundering Prevention Act of 2002, which took effect on July 1, 2005.

• The headquarter of the Agriculture Insurance Company Limited is situated in New Delhi.
• The Agriculture Insurance Company of India Limited is a specialized insurance company that is focused on providing crop-yield based insurance and weather-based insurance schemes in India.
• It was established in 2002.

Insurance law in India had its origins in the United Kingdom with the establishment of a British firm, the Oriental Life Insurance Company in 1818 in Calcutta, followed by the Bombay Life Assurance Company in 1823, the Madras Equitable Life Insurance Society in 1829. However, till the establishment of the Bombay Mutual Life Assurance Society in 1871, Indians were charged an extra premium of up to 20% as compared to the British and it was the 1^st Indian insurer.

The correct answer is 1979.

• Pilot Crop Insurance Scheme (PCIS) 1979-1984 was launched by the General Insurance Corporation (GIC) in 1979, which was based on the “Area Approach” for providing insurance cover against a deficit in crop yield below the threshold level.
• This scheme covered cereals, millets, oilseeds, cotton, potato and chickpea.
• The PCIS was implemented in 12 states and covered 6.23 lakh farmers for a premium of Rs. 195.01 lakh against claims of Rs. 155.68 lakh during 1984-85.

The correct answer is LIC will provide all documents and policy certificates in electronic form

Important Points

• The Corporation is close to signing a Rs 1100 crore Electronic Data Management System (EDMS) contract with a consortium-led by global IT major Hewlett-Packard (HP) that will transfer it to the paperless world by 2010.

Key Points

• eIA is the portfolio of insurance policies of a policyholder held in an electronic form with an insurance repository (IR). This will help an eIA holder keep track of insurance policies (life as well as non-life) across multiple insurers in one place. The Insurance Regulatory and Development Authority of India (Irdai) has allowed four entities to carry out IR business: NSDL National Insurance Repository (NIR), CDSL Insurance Repository, KARVI Insurance Repository and CAMS Insurance Repository.

• Nomination of a person is provided under Section 39 of the Indian Insurance Act 1938.
• The Insurance Act has 120 Sections and 8 Schedules.
• The Insurance Act to govern both Life Insurance and Non-Life Insurance was passed in 1938.

• Insurance companies’ ability to pay the claims of policyholders is termed as Solvency.
• An insurer to remain solvent must have enough funds to meet obligations for his present and future claims that are made against the insurer.
• If an insurer does not have the funds to meet his/her obligations, then the insurer is termed as insolvent.