MC10 Which of the following is a major challenge facing the banking sector in India?
A. Low penetration of banking services in rural areas
B. Lack of competition among banks
C. Excessive regulation by the government
D. Over-reliance on foreign capital
Answer:A
MC10 Which of the following is a major challenge facing the banking sector in India?
A. Low penetration of banking services in rural areas B. Lack of competition among banks C. Excessive regulation by the government D. Over-reliance on foreign capital
Explanation: Low penetration of banking services in rural areas is a major challenge facing the banking sector in India. Despite the government’s efforts to promote financial inclusion, a large section of the rural population still lacks access to basic banking services. This hampers their ability to participate in the formal economy and hinders the overall growth of the country.