UPSC Prelims 2014·GS1·economy·money and banking

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.

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Last updated 23 May 2026, 3:31 pm IST
  1. A1 only
  2. B2 only
  3. CBoth 1 and 2Correct
  4. DNeither 1 nor 2

Explanation

Business Correspondents (BCs), also known as Bank Saathis or Bank Mitras, are integral to India's financial inclusion efforts, particularly in branchless and remote rural areas. Their primary role is to bridge the gap between banks and the unbanked population by providing a range of basic banking services at the doorstep or in villages themselves. **Statement 1: It enables the beneficiaries to draw their subsidies and social security benefits in their villages.** This is a core function of BCs. They facilitate the disbursement of government welfare payments, NREGA wages, and various social security benefits (like pensions) directly to beneficiaries, thereby saving them the time and cost of traveling to distant bank branches. **Statement 2: It enables the beneficiaries in the rural areas to make deposits and withdrawals.** BCs are authorized to conduct basic financial transactions, including cash deposits and withdrawals, balance inquiries, and even small remittances, on behalf of banks. This significantly enhances access to banking services for the rural population. Therefore, both statements accurately describe the facilities and benefits offered by Business Correspondents.
economy: What is/are the facility/facilities the beneficiaries can get from the services of Business Correspondent (Bank Saathi)

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