UPSC Prelims 2016 CSAT Paper II · Q44 of 79 Comprehension medium

Passage

In the last decade, the banking sector has been restructured with a high degree of automation and products that mainly serve middle-class and upper middle-class society. Today there is a need for a new agenda for the banking and non-banking financial services that does not exclude the common man.

Which one of the following is the message that is essentially implied in the above passage ?

  1. (a) Need for more automation and more products of banks
  2. (b) Need for a radical restructuring of our entire public finance system
  3. (c) Need to integrate banking and non-banking institutions
  4. (d) Need to promote financial inclusion ✓ UPSC's answer

Why the answer is (d)

• The passage states that recent banking restructuring focused on automation and products for the middle and upper-middle classes.

• It explicitly identifies a gap where the 'common man' is excluded from these services.

• The core argument is the need for a new agenda in banking and non-banking financial services to address this exclusion.

• 'Financial inclusion' is the standard term for ensuring access to financial services for all sections of society, including the common man.

• Therefore, the implied message is the need to promote financial inclusion to serve the excluded population.

Why the other options are wrong

(a) Need for more automation and more products of banks
The passage criticizes the current focus on automation and products for the wealthy, rather than advocating for more of them.
(b) Need for a radical restructuring of our entire public finance system
The passage specifically addresses banking and non-banking financial services, not the entire public finance system.
(c) Need to integrate banking and non-banking institutions
The passage mentions both sectors to define the scope of the new agenda, but does not suggest merging or integrating the institutions themselves.

Asked in the CSAT Paper II of the UPSC Civil Services Preliminary Examination 2016, held on 7 August 2016. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.

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