UPPCS Prelims 2022 · GS Paper I: L.B.S. is one of the economic measures taken by the Government of India for…
L.B.S. is one of the economic measures taken by the Government of India for financial inclusion. What is L.B.S. in this context ?
Answer (a) & explanation
Option (a), Lead Bank Scheme, is correct. The Lead Bank Scheme was introduced by the RBI in 1969, based on the Gadgil Study Group and the Nariman Committee. Each district is assigned a lead bank, usually a public sector bank, which coordinates credit planning, prepares district credit plans and promotes banking outreach, supporting financial inclusion. Loan Banking Scheme (b), Lead Breaking System (c) and Loan Banking System (d) are made-up distractors. Concept: lead banks convene District Consultative Committees and run Rural Self Employment Training Institutes. Other inclusion measures include priority sector lending, Jan Dhan Yojana (2014), business correspondents, payments banks and the Financial Inclusion Index launched by the RBI in 2021.
L.B.S. means Lead Bank Scheme.
Question as printed in UPPSC's official question booklet. Source: uppsc.up.nic.in
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Same theme in UPSC Mains
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In the news: current affairs on this topic
Financial inclusion saturation campaign in 2.70 lakh panchayats and ULBs from 21 October
The Department of Financial Services will run a nationwide campaign from 21 October to 31 December 2026 to saturate financial inclusion schemes in 2.70 lakh gram panchayats and urban local bodies. Bank camps will enrol people in PMJJBY, PMSBY and APY, open Jan Dhan accounts, finish re-KYC and nominations, and spread awareness on digital frauds and unclaimed deposits.
20 Oct 2026Related questions from other years
Which one of the following correctly represents the three key sub-indices of the Financial Inclusion Index (FI-Index) of the Reserve Bank of India (RBI) ?
Answer (c) & explanation
The sub-indices are Access, Usage and Quality (c). The RBI launched the FI-Index in August 2021. It covers banking, investments, insurance, postal services and pension, and gives one value between 0 and 100. Its three parameters are Access (35%), Usage (45%) and Quality (20%). Options (a), (b) and (d) list areas or ideas that are not its sub-indices; GDP contribution and affordability are not parameters.
Notice the logic: usage has the most weight, because an account that is never used does not mean real inclusion. Quality includes financial literacy and consumer protection. The index is published every July, and it has risen steadily, helped by Jan Dhan (2014) and UPI.
Answer as per the official UPSC answer key.
Which one of the following best describes the key objective of India's 'Open Network for Digital Commerce' (ONDC) initiative ?
Answer (c) & explanation
ONDC aims to break the dominance of large platforms (c). The Open Network for Digital Commerce, a DPIIT initiative (2021-22), is an open set of rules, like UPI for shopping. A buyer on one app can buy from a seller listed on another app. This interoperability lets small sellers reach buyers without joining a giant platform. Option (a) is wrong: it does not give the government control of transactions. Option (b) is wrong: private players can join; they are not replaced. Option (d) is wrong: it does not force UPI payments.
Notice ONDC's design: it is a not-for-profit company and part of India's Digital Public Infrastructure, along with Aadhaar, UPI and DigiLocker. It now covers food, groceries and mobility too.
options (a), (b) and (d) use strong words: "all", "replace", "mandate". A public digital platform usually opens a market; it does not take it over.
Answer as per the official UPSC answer key.
Which one of the following statements about Unified Payments Interface (UPI) and Central Bank Digital Currency (Digital Rupee) is not correct ?
Answer (d) & explanation
Statement (d) is not correct (d). Under UPI, money moves between bank accounts; the deposit is a liability of the bank. The Digital Rupee (e₹) is like a currency note in digital form, a direct liability of the RBI, not of users or banks. Option (a) is correct: UPI is a payment system, while the e-rupee is sovereign currency. Option (b) is correct: an e-rupee transfer moves value from wallet to wallet with no separate settlement. Option (c) is correct: e-rupee wallet transactions do not appear in bank statements.
Notice the legal base: the RBI Act was amended in 2022 to let the RBI issue a CBDC. Pilots began that year in wholesale (e₹-W) and retail (e₹-R) forms.
a "not correct" question. Look for the statement that puts the RBI's liability on someone else.
Answer as per the official UPSC answer key.
Which of the following statements about Real-World Assets (RWA) Tokenization are correct ?
- 1. Tokenization is the process of turning real world assets into digital tokens using blockchain technology.
- 2. Tokenization of real world assets offers 24x7 access, promoting financial inclusion.
- 3. Tokenization of real world assets will allow the access to high growth investment opportunities for individuals in India.
Select the answer using the code given below :
Answer (a) & explanation
All three statements are correct (a). Statement 1 is right: tokenization turns a real asset, like a building, bond or gold, into digital tokens recorded on a blockchain. Statement 2 is right: tokens can be traded 24x7, which widens financial inclusion. Statement 3 is right: small, fractional tokens let ordinary individuals get into high-growth investments that once needed crores. So options (b), (c) and (d) fail.
Notice the risks: unclear regulation, cyber threats and weak investor protection. In India, related steps include Fractional Ownership Platforms and REITs and InvITs, which already let small investors own slices of real estate and infrastructure. The RBI is also testing tokenized deposits and government securities in sandbox pilots.
Answer as per the official UPSC answer key.