What is/are the facility/facilities the beneficiaries can get from the

What is/are the facility/facilities the beneficiaries can get from the services of Business Correspondent (Bank Saathi) in branchless areas?

  • 1. It enables the beneficiaries to draw their subsidies and social security benefits in their villages.
  • 2. It enables the beneficiaries in the rural areas to make deposits and withdrawals.

Select the correct answer using the code given below.

1 only
2 only
Both 1 and 2
Neither 1 nor 2
This question was previously asked in
UPSC IAS – 2014
The correct option is C. Both statements 1 and 2 describe facilities that beneficiaries can get from the services of Business Correspondents (Bank Saathi) in branchless areas.
Business Correspondents (BCs), also known as Bank Saathis, are retail agents appointed by banks to provide banking services in remote locations where establishing brick-and-mortar branches is not viable. Their main role is to promote financial inclusion by extending banking services to the underserved population, particularly in rural areas.
1. BCs enable beneficiaries of government schemes, pensions, and other social security benefits to receive their payments conveniently in their villages, often using biometric authentication.
2. BCs provide basic banking services like account opening, cash deposits, cash withdrawals, balance enquiry, and fund transfers through micro-ATMs or other digital devices at or near the customer’s location in rural areas.
Both facilities are core functions aimed at bringing banking services to the doorstep of people in unbanked or underbanked regions.
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