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General Studies 2026 GS Paper III 10 marks 150 words Compulsory Examine

GS Paper III — Q2

Examine the view that financial inclusion is an integral part of social and economic inclusion in a country like India. Also…

Examine the view that financial inclusion is an integral part of social and economic inclusion in a country like India. Also throw light on the usefulness of the R.B.I.'s Financial Inclusion Index. (Answer in 150 words) 10 marks

हिंदी में प्रश्न पढ़ें

इस दृष्टिकोण का परीक्षण कीजिए कि वित्तीय समावेशन भारत जैसे देश में सामाजिक तथा आर्थिक समावेशन का अभिन्न हिस्सा है। आर.बी.आई. के वित्तीय समावेशन सूचकांक की उपयोगिता पर भी प्रकाश डालिए। (उत्तर 150 शब्दों में दीजिए)

Q2 of the 2026 UPSC Mains General Studies GS Paper III, as printed
The question as printed in the 2026 General Studies paper
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Model answer

Written by UPSC Answer Check against this question's marking rubric, to the 150-word length. UPSC does not publish answers for Mains — this is one way to score well, not an official key.

Financial inclusion is fundamentally linked to socio-economic inclusion. Economically, providing formal credit, savings, and insurance eliminates dependence on exploitative informal moneylenders. Socially, leveraging the JAM (Jan Dhan-Aadhaar-Mobile) trinity enables targeted delivery of safety nets through schemes like PM Jan Dhan Yojana, Atal Pension Yojana, and PM Suraksha Bima Yojana, empowering marginalized segments.

Usefulness of RBI’s FI-Index Launched in 2021 (base year 2017) and published annually every July, the composite Financial Inclusion Index (scored 0–100) evaluates progress across three weighted parameters: Access (35%), Usage (45%), and Quality (20%).

The index has risen from 53.9 (FY21) to above 64 in recent years. Its key usefulness lies in tracking multidimensional progress, identifying persistent regional and gender gaps, and enabling evidence-based policy targeting to guide the RBI’s National Strategy for Financial Inclusion. Thus, it serves as a critical monitoring tool ensuring access translates into meaningful socio-economic equity.

What "Examine" is asking you to do

Test the proposition the question puts to you and return a finding on how far it holds. Examine stems carry a claim, or ask whether something has happened, and expect evidence weighed both ways before the extent is stated — often with remedial measures attached.

Structure that answers it

Restate the claim as the question frames it → evidence that supports it → evidence that undercuts it → the conditions under which it holds → verdict on how far it stands

Where marks are lost

Stopping at description. An examination has to reach a finding, and “examine with justification” means the extent must be stated, not implied.

All UPSC directive words, compared →

How this answer will be evaluated

Approach

Framework: GS3 Economy: Situation > Analysis > Measures > Assessment. examine: intro > how/why with reasoning > evidence > conclusion Full marks: Clear link between financial and social inclusion; precise explanation of FII utility with data.

Key points expected

  • Define financial inclusion as access to banking/credit/insurance
  • Link financial access to poverty reduction and social mobility
  • Explain RBI Financial Inclusion Index (FII) components
  • Assess FII's role in measuring progress and policy gaps

Evaluation rubric

Each sub-part is marked on its own, against the marks and word limit printed on the paper.

  1. The answer Analyze the link between financial and socio-economic inclusion; explain RBI Index utility. 10 marks · 150 words

    examine— intro → how/why with reasoning → evidence → conclusion

    Must cover

    • Define financial inclusion as access to banking/credit/insurance
    • Link financial access to poverty reduction and social mobility
    • Explain RBI Financial Inclusion Index (FII) components
    • Assess FII's role in measuring progress and policy gaps

    Loses marks

    • Treating financial inclusion as just 'opening bank accounts'
    • Ignoring the 'social' aspect (e.g., women, rural, SC/ST)
    • Describing FII without explaining its 'usefulness' or utility

    Earns more

    • Mention Jan Dhan Yojana or PMJDY as enablers
    • Reference specific FII sub-indices (Access, Usage, Quality)
    • Mention digital payment infrastructure (UPI) as a driver
    • Note the shift from 'access' to 'usage' in inclusion

    Extra mark

    • Cite specific FII score or trend (e.g., 2023-24 data)
    • Mention specific RBI circular or committee report on FII

Practice this exact question

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