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 rural areas to make deposits and withdrawals. Select the correct answer using the code given below.

Question

GSMediumPrelims 2014Social Issues & Schemes

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

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

Select the correct answer using the code given below.

Explanation

Business Correspondents (BCs) or Bank Saathis are agents appointed by banks to provide basic banking services in rural and unbanked areas where setting up a full-fledged branch might not be feasible.

They act as a bridge between the bank and the local population, offering essential financial services

Statement 1 is correct: BCs can help villagers access government subsidies and social security benefits electronically deposited into their accounts. This eliminates the need to travel long distances to banks and reduces the risk of cash handling. Statement 2 is correct: Villagers can deposit their savings or withdraw cash through BCs, promoting financial inclusion and facilitating small transactions without requiring them to visit a bank branch.

Therefore, both options (1 and 2) are the facilities that beneficiaries can avail through Business Correspondent services.

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