Directions (Q. 1-10): Read the passage carefully and answer the questions given below it. Certain words/ phrases are given in bold to help you locate them while answering some of the questions
That women in India are much more financially excluded than the men is evident from the figures as of March 2011. Only 21 percent of total bank deposit accounts were held by women and these accounts for just 12 percent of the total volume of deposits. Similarly, women availed only 18 per cent of the total small credit from banks in 2011. The problem must be understood in the context of larger issues arising from the underprivileged status of a woman in India.
Finance minister P Chidambaram has proposed to deal with the financial exclusion of Indian women by setting up a women’s bank. There are two reasons why the idea is not exciting for some of us. First, merely setting up an all women bank is not likely to address the core issue of attitudinal bias against women, which is so prevalent in our banking institutions. There is both overt and covert
exclusion in the system. Second, there is no guarantee that the all-women bank is going to mitigate the problem of financial exclusion of Indian women. My scepticism also stems from the limited success of other previous attempts at focused banking, such as the setting up of the regional rural banks.
In order to assess the likely impact of the proposed women-only bank, it would be interesting to draw an analogy with the launching of the regional rural banks in the 1970s. The RRBs were set up in 1976 as special conduits of credit delivery in rural India. They were supposed to combine the “local feel and familiarity of rural problems with the professionalism and large resource base of commercial banks”. Thus, there was an acknowledgment that mainstream commercial banks could not effectively cater to the needs of the villages, so a new type of locally oriented banks, the RRBs had to be set up. This is very similar to the proposed women’s bank’s ambition “to address the gender-related issues of financial inclusion”.
On the face of it, there is nothing wrong in setting up new institutions that target specific segments of the population. However, we have seen in the case of the RRBs that, less than ten years into operation, their financial viability became a matter of concern. Starting from 1981, more than 10 committees were set up to address various issues (of financial viability, reconstruction and
amalgamation, manpower and human resources and technological upgradation) relating to operation of the RRBs. Following this, the RRBs went through the process of recapitalisation and amalgamation so as to make them financially sound. Due to amalgamation and mergers, some RRBs have become large entities that defeat the very concept of " locally oriented" banks.
Ironically the number of urban and metropolitan branches of RRBs has increased over the years, while that of their rural branches has declined. Between 1992 and 2009, there was a 22 percentage point decline in the proportion of rural branches of RRBs while there was a 16 percentage point increase in the share of their non-rural branches. Thus the creation of " localised rural banks" as a mean for tackling the " lack of familiarity or rural problems on the part of mainstream commercial banks" does not seem to have served its purpose. In fact, rural India is much more financially excluded today when compared to the 1990s, both in terms of banking outlets and availability of institutional credit.
Going by this analogy, it must be asked if the women only bank can promote financial inclusion of India women unless we address the core issue of exclusion at a more fundamental level. Attitudinal changes in our banking system should be an essential and integral part of all our efforts to promote financial inclusion. Not too long ago, the Rangarajan Committee on financial inclusion had emphasised the correction of mindsets of the bank staff. Citing a study conducted in Madhya Pradesh, the committee highlighted that the “majority of the bank branch managers held negative attitudes towards lending to (the) poor, although (the) poor, if guided properly, not only succeed as entrepreneurs but also are good repayers”. There is no doubt that if the poor happens to be a woman, this discrimination gets doubled.
Going by this analogy, it must be asked if the women only bank can promote financial inclusion of India women unless we address the core issue of exclusion at a more fundamental level. Attitudinal changes in our banking system should be an essential and integral part of all our efforts to promote financial inclusion. Not too long ago, the Rangarajan Committee on financial inclusion had emphasised the correction of mindsets of the bank staff. Citing a study conducted in Madhya Pradesh, the committee highlighted that the “majority of the bank branch managers held negative attitudes towards lending to (the) poor, although (the) poor, if guided properly, not only succeed as entrepreneurs but also are good repayers”. There is no doubt that if the poor happens to be a woman, this discrimination gets doubled.
1. Why is the author apprehensive about the success of the women’s bank?
1) Because women are not so competent as men.
2) Because previous attempts at focused banking such as the setting up of the RRBs have shown limited success.
3) Because there is no ready infrastructure for the setting up of the all women bank.
4) The government itself is under severe financial constraints as of now.
5) All of the above
2. Find the incorrect statement regarding Regional Rural Banks.
1) The RRBs were set up as a special channel of credit delivery in rural villages.
2) The RRBs were set up to cater to the needs of the villages.
3) The number of urban branches of RRBs has increased over the years.
4) The number of both rural and metropolitan branches of RRBs has increased over the years.
5) None of these
4) The number of both rural and metropolitan branches of RRBs has increased over the years.
5) None of these
3. Which of the following statements is/are true about the operation of RRBs in the first decade of their inception?
1) They did not reflect the desired results as expected at the time of their launch.
2) To make the RRBs financially sound the process of mergers and amalgamation were adopted.
3) Various committees were formed to address various issues related to operations of the RRBs.
4) Only 1) and 3)
5) All 1), 2) and 3)
4. What is/are the reason(s) for setting up of the all women’s bank?
(A) Financial inclusion of Indian women
(B) To address the core issue of attitudinal bias against women
(C) To provide financial assistance and loans only to women professionals
1) All (A), (B) and (C)
2) Only (A) and (B)
3) Only (A) and (C)
3) Only (A) and (C)
4) Only (B) and (C)
5) Only (A)
5. Which of the following needs to be done to promote financial inclusion?
1) General mindset towards women in general and poor women in particular needs to be changed.
2) Women should be granted financial aids at comparatively low rate of interest.
3) Women at village level should be educated through meetings, hoardings, banners and posters.
4) It should be made mandatory to bring all rural women under the umbrella of financial inclusion.
5) None of these
Directions (Q. 6-8): Choose the word/group of words which is MOST SIMILAR in meaning to the word/ group of words printed in bold as used in the passage.
6. Discrimination
1) description
2) insight
3) revelation
4) distinction
5) contradiction
7. Core
1) right
2) temporary
3) Central
4) vast
5) burning
8. Stems
1) declines
2) moves
3) extracts
4) trunks
5) originates
Directions (Q. 9-10): Choose the word/group of words which is MOST OPPOSITE in meaning to the word/ group of words printed in bold as used
in the passage.
9. Exciting
1) repulsive
1) repulsive
2) provocating
3) interesting
4) useful
5) elating
10. Mitigate
1) allay
2) enhance
3) relieve
4) waste
4) waste
5) vindicate
Answers
1-2
2-4
3-5
4-2
5-1
6-4
7-3
8-5
9-1
10-2
Directions (Q. 1-10): Read the passage carefully and answer the questions given below it. Certain words/ phrases are given in bold to help you locate them while answering some of the questions
That women in India are much more financially excluded than the men is evident from the figures as of March 2011. Only 21 percent of total bank deposit accounts were held by women and these accounts for just 12 percent of the total volume of deposits. Similarly, women availed only 18 per cent of the total small credit from banks in 2011. The problem must be understood in the context of larger issues arising from the underprivileged status of a woman in India.
Finance minister P Chidambaram has proposed to deal with the financial exclusion of Indian women by setting up a women’s bank. There are two reasons why the idea is not exciting for some of us. First, merely setting up an all women bank is not likely to address the core issue of attitudinal bias against women, which is so prevalent in our banking institutions. There is both overt and covert
exclusion in the system. Second, there is no guarantee that the all-women bank is going to mitigate the problem of financial exclusion of Indian women. My scepticism also stems from the limited success of other previous attempts at focused banking, such as the setting up of the regional rural banks.
In order to assess the likely impact of the proposed women-only bank, it would be interesting to draw an analogy with the launching of the regional rural banks in the 1970s. The RRBs were set up in 1976 as special conduits of credit delivery in rural India. They were supposed to combine the “local feel and familiarity of rural problems with the professionalism and large resource base of commercial banks”. Thus, there was an acknowledgment that mainstream commercial banks could not effectively cater to the needs of the villages, so a new type of locally oriented banks, the RRBs had to be set up. This is very similar to the proposed women’s bank’s ambition “to address the gender-related issues of financial inclusion”.
On the face of it, there is nothing wrong in setting up new institutions that target specific segments of the population. However, we have seen in the case of the RRBs that, less than ten years into operation, their financial viability became a matter of concern. Starting from 1981, more than 10 committees were set up to address various issues (of financial viability, reconstruction and
amalgamation, manpower and human resources and technological upgradation) relating to operation of the RRBs. Following this, the RRBs went through the process of recapitalisation and amalgamation so as to make them financially sound. Due to amalgamation and mergers, some RRBs have become large entities that defeat the very concept of " locally oriented" banks.
Ironically the number of urban and metropolitan branches of RRBs has increased over the years, while that of their rural branches has declined. Between 1992 and 2009, there was a 22 percentage point decline in the proportion of rural branches of RRBs while there was a 16 percentage point increase in the share of their non-rural branches. Thus the creation of " localised rural banks" as a mean for tackling the " lack of familiarity or rural problems on the part of mainstream commercial banks" does not seem to have served its purpose. In fact, rural India is much more financially excluded today when compared to the 1990s, both in terms of banking outlets and availability of institutional credit.
Going by this analogy, it must be asked if the women only bank can promote financial inclusion of India women unless we address the core issue of exclusion at a more fundamental level. Attitudinal changes in our banking system should be an essential and integral part of all our efforts to promote financial inclusion. Not too long ago, the Rangarajan Committee on financial inclusion had emphasised the correction of mindsets of the bank staff. Citing a study conducted in Madhya Pradesh, the committee highlighted that the “majority of the bank branch managers held negative attitudes towards lending to (the) poor, although (the) poor, if guided properly, not only succeed as entrepreneurs but also are good repayers”. There is no doubt that if the poor happens to be a woman, this discrimination gets doubled.
Going by this analogy, it must be asked if the women only bank can promote financial inclusion of India women unless we address the core issue of exclusion at a more fundamental level. Attitudinal changes in our banking system should be an essential and integral part of all our efforts to promote financial inclusion. Not too long ago, the Rangarajan Committee on financial inclusion had emphasised the correction of mindsets of the bank staff. Citing a study conducted in Madhya Pradesh, the committee highlighted that the “majority of the bank branch managers held negative attitudes towards lending to (the) poor, although (the) poor, if guided properly, not only succeed as entrepreneurs but also are good repayers”. There is no doubt that if the poor happens to be a woman, this discrimination gets doubled.
1. Why is the author apprehensive about the success of the women’s bank?
1) Because women are not so competent as men.
2) Because previous attempts at focused banking such as the setting up of the RRBs have shown limited success.
3) Because there is no ready infrastructure for the setting up of the all women bank.
4) The government itself is under severe financial constraints as of now.
5) All of the above
2. Find the incorrect statement regarding Regional Rural Banks.
1) The RRBs were set up as a special channel of credit delivery in rural villages.
2) The RRBs were set up to cater to the needs of the villages.
3) The number of urban branches of RRBs has increased over the years.
4) The number of both rural and metropolitan branches of RRBs has increased over the years.
5) None of these
4) The number of both rural and metropolitan branches of RRBs has increased over the years.
5) None of these
3. Which of the following statements is/are true about the operation of RRBs in the first decade of their inception?
1) They did not reflect the desired results as expected at the time of their launch.
2) To make the RRBs financially sound the process of mergers and amalgamation were adopted.
3) Various committees were formed to address various issues related to operations of the RRBs.
4) Only 1) and 3)
5) All 1), 2) and 3)
4. What is/are the reason(s) for setting up of the all women’s bank?
(A) Financial inclusion of Indian women
(B) To address the core issue of attitudinal bias against women
(C) To provide financial assistance and loans only to women professionals
1) All (A), (B) and (C)
2) Only (A) and (B)
3) Only (A) and (C)
3) Only (A) and (C)
4) Only (B) and (C)
5) Only (A)
5. Which of the following needs to be done to promote financial inclusion?
1) General mindset towards women in general and poor women in particular needs to be changed.
2) Women should be granted financial aids at comparatively low rate of interest.
3) Women at village level should be educated through meetings, hoardings, banners and posters.
4) It should be made mandatory to bring all rural women under the umbrella of financial inclusion.
5) None of these
Directions (Q. 6-8): Choose the word/group of words which is MOST SIMILAR in meaning to the word/ group of words printed in bold as used in the passage.
6. Discrimination
1) description
2) insight
3) revelation
4) distinction
5) contradiction
7. Core
1) right
2) temporary
3) Central
4) vast
5) burning
8. Stems
1) declines
2) moves
3) extracts
4) trunks
5) originates
Directions (Q. 9-10): Choose the word/group of words which is MOST OPPOSITE in meaning to the word/ group of words printed in bold as used
in the passage.
9. Exciting
1) repulsive
1) repulsive
2) provocating
3) interesting
4) useful
5) elating
10. Mitigate
1) allay
2) enhance
3) relieve
4) waste
4) waste
5) vindicate
Answers
1-2
2-4
3-5
4-2
5-1
6-4
7-3
8-5
9-1
10-2
No comments:
Post a Comment