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

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

Select the correct answer using the code given below:

  1. A.1 only
  2. B.2 only
  3. C.Both 1 and 2
  4. D.Neither 1 nor 2
▶ Answer & Explanation

Correct answer: C. Both 1 and 2

Business Correspondents (BCs) or Bank Saathis are appointed to provide basic banking services in unbanked and remote areas. They enable access to financial services by facilitating cash withdrawal and deposit transactions for beneficiaries. Furthermore, BCs are instrumental in the direct disbursement of subsidies, wages, and social security benefits, ensuring these reach the intended recipients at their doorstep, thereby promoting financial inclusion.

Source: UPSC gs1 2014

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