Services of Business Correspondent (Bank Saathi) — UPSC Prelims PYQ 2014

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.

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Explanation

Both statements are correct

• Business Correspondents (BCs), also known as Bank Saathis, are agents appointed by banks to provide essential banking services in branchless and remote areas. They enable beneficiaries to withdraw subsidies and social security benefits, such as pensions and MGNREGA wages, directly in their villages through Direct Benefit Transfer (DBT). Additionally, BCs allow rural customers to make deposits and withdrawals, ensuring access to basic banking services without a physical bank branch.

Answer: (c) Both 1 and 2; Difficulty Level: Easy