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.
✓ Correct answer: c) Both 1 and 2 only
ExplanationBanking Correspondents (BCs) also known as Bank Saathis are individuals or entities hired by banks in India (in- cluding commercial banks, Regional Rural Banks (RRBs), and Lo- cal Area Banks (LABs)) to provide banking services in areas with limited or no banking access.A BC acts as an agent for the bank, serving as a substitute for the bank’s physical branch.Statement 1 is correct: The Reserve Bank of India (RBI) launched the Business Correspondent (BC) Model in 2006 to improve financial inclusion in India.BCs play a critical role in disbursing direct benefit transfers (DBT), including sub- sidies and social security payments, to beneficiaries in rural areas.This eliminates the need for beneficiaries to travel long distances to a bank branch to collect their payments.Statement 2 is correct: BCs offer a range of basic banking ser- vices, including accepting deposits, facilitating withdrawals, and enabling other small transactions.This brings basic bank- ing services to people who previously had limited or no access.185
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