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

Correct Option

Business Correspondents (BCs), also known as Bank Saathis, are agents appointed by banks to provide basic banking services in areas lacking physical bank branches, particularly in rural and remote regions. Their services are crucial for financial inclusion and extending banking reach to the last mile.

The facilities provided by BCs include:

• Enabling beneficiaries to withdraw government subsidies and social security benefits (such as pensions and Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) wages) directly in their villages. This facilitates the efficient and accessible delivery of welfare schemes.
• Facilitating deposits and withdrawals from bank accounts for rural beneficiaries. These transactions are typically conducted using handheld devices or micro-ATMs, often integrated with Aadhaar-based biometric authentication, ensuring secure and convenient banking services.

Therefore, both statement 1 and statement 2 accurately describe the services offered by Business Correspondents.

Incorrect Options

Option (a) is incorrect because the services of Business Correspondents are not limited to the withdrawal of subsidies and social security benefits. They also facilitate general deposits and withdrawals, making the statement "1 only" incomplete.

Option (b) is incorrect because while BCs enable deposits and withdrawals, their role also critically includes the disbursement of government subsidies and social security benefits. Stating "2 only" is an incomplete representation of their functions.

Option (d) is incorrect as both statements 1 and 2 correctly describe the essential facilities provided by Business Correspondents, rendering the option "Neither 1 nor 2" invalid.