Correct Option (d)
The passage primarily emphasizes the critical need for individuals, particularly in rural areas of developing countries, to have access to safe, reliable formal financial institutions and appropriate financial instruments. It highlights that the lack of such access hinders savings mobilization and negatively impacts poor households by encouraging immediate spending rather than enabling them to manage cash flow volatility, smoothen consumption, and build working capital. Promoting financial inclusion directly addresses this core issue by ensuring that all segments of the population have access to necessary financial services and products.
Incorrect Options:
Option (a) - Establish more banks: While establishing banks is a component of financial access, the passage's message is broader, focusing on comprehensive access to safe and reliable financial institutions and instruments, not merely an increase in the number of physical bank branches.
Option (b) - Increase the Gross Domestic Product (GDP) growth rate: The passage discusses household-level savings mobilization and financial access for individuals, particularly the poor. It does not address macroeconomic indicators such as GDP growth rate.
Option (c) - Increase the interest rate of bank deposits: The passage mentions "reasonable financial incentives" as a factor, but the fundamental barrier it identifies is the lack of access to formal financial mechanisms themselves. The primary focus is on the availability of institutions and instruments, rather than the specific interest rates offered on deposits.