The main paradox of financial inclusion in rural India is access without actual usage: millions hold accounts they never operate, so accounts alone have not delivered inclusion. Informal credit persists because villagers trust local lenders and feel familiar with them — not because of documentation rules, interest rates, or missing government incentives. Accounts lie dormant where patriarchal norms, digital illiteracy, and lack of financial literacy prevail; mobile network expansion, by contrast, aids usage and does NOT cause dormancy. The author criticises the assumption that tools like OTPs can replace financial education: speed and biometrics cannot teach. The gender gap is cultural: women's financial agency is hindered chiefly by cultural factors, not by informal lenders, missing identity documents, or women leading decisions at home. According to the passage, what is the main paradox of financial inclusion in rural India?

Subject: English Language | Topic: Reading Comprehension | Difficulty: MEDIUM

Options

1. (A) Lack of infrastructure
2. (B) Overreliance on technology
3. (C) Access without actual usage
4. (D) Excess of digital banking

Verified Answer

Option (C): Access without actual usage

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