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.
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2 ✓ UPSC's answer
- (d) Neither 1 nor 2
Why the answer is (c)
• Business Correspondents (Bank Mitra/Saathi), permitted by the RBI since 2006, are agents who provide banking services in villages without branches using hand-held devices and Aadhaar-based micro-ATMs.
• Beneficiaries can withdraw DBT subsidies, pensions and MGNREGA wages locally (statement 1) and make small deposits and withdrawals, open accounts and remit money (statement 2).
• Hence both 1 and 2, option (c).
Why the other options are wrong
- (a) 1 only
- Statement 2 is also correct: deposits and withdrawals are enabled.
- (b) 2 only
- Statement 1 is also correct: subsidies can be drawn.
- (d) Neither 1 nor 2
- Both statements are correct.
Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2014, held on 24 August 2014. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.