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.
Answer & explanation
Answer: (c) Both 1 and 2
Business Correspondents, also called Bank Saathi, are agents who take banking to villages that have no bank branch. The Finance Minister's statement on the Swabhimaan campaign names both functions: basic banking services such as deposits and withdrawals, and payout of subsidies and social security benefits in the village.
- ✓ 1. Subsidies and social security benefits are credited directly to the beneficiary's bank account. The beneficiary can then draw the money through the Business Correspondent in the village, without travelling to a branch.
- ✓ 2. Under the Swabhimaan campaign, banks use Business Correspondents to offer basic services such as deposits, withdrawals and remittances to rural customers in branchless areas.
Remember · Business Correspondent = Bank Saathi (Swabhimaan campaign, 2011). Offers deposits, withdrawals, remittances and village-level payout of subsidies and social security benefits in branchless areas.
Sources
- PIB press release: Finance Minister on the Swabhimaan Financial Inclusion Campaign (Business Correspondents / Bank Saathi) ↗ “Banks will provide basic services like deposits, withdrawals and remittances using the services of Business Correspondents also known as Bank Saathi. … this initiative also enables Government subsidies and social security benefits to now be directly credited to the accounts of the beneficiaries and who would be able to draw the money through the Business Correspondents in their village itself.”
Question: UPSC Civil Services (Preliminary) 2014, General Studies Paper I. Explanation: Minimalist IAS, checked 25 Oct 2026 (how we verify). ·
