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. What assumption does the author criticise regarding digital financial systems?

Subject: English Language | Topic: Spotting Errors | Difficulty: MEDIUM

Options

1. (A) Mobile payments are fast
2. (B) Biometrics ensure security
3. (C) OTPs can replace financial education
4. (D) Rural people distrust technology

Verified Answer

Option (C): OTPs can replace financial education

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