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.

The MCQ lists as proposition 1 that BCs 'enable the beneficiaries to draw their subsidies and social security benefits in their villages' and proposition 2 that BCs 'enable beneficiaries to make deposits and withdrawals', then indicates only (2) is correct.

A student could infer that standard texts treat BCs primarily as deposit/withdrawal agents rather than as official channels for direct government subsidy disbursement, and so should check how DBT/benefit flows are routed in practice (bank accounts/PoS/Biometric).

JAM (Jan Dhan–Aadhaar–Mobile) is presented as the reform to directly transfer subsidies to beneficiaries' bank accounts and to enable access to social security schemes via bank accounts.

Combine this with knowledge that BCs provide last‑mile banking: one can test whether subsidies routed via JAM require formal bank account transactions (which BCs could facilitate) or separate PoS/agency arrangements.

DBT transfers cash into beneficiaries' Aadhaar‑linked bank accounts to remove leakages, implying subsidies/social benefits are intended to reach bank accounts.

A student could check whether beneficiaries in branchless villages receive DBT directly into accounts accessible via BCs (cash‑out) or whether they must use formal bank branches/ATMs/agents.

DBT in fertiliser is implemented via retailer PoS machines linked to an e‑portal and biometric authentication (Aadhaar), not described as using BC cash‑out services.

Use this example to probe which DBT schemes rely on PoS/retailer redemption versus bank‑account cash withdrawals (which BCs might provide) to judge whether BCs can directly deliver subsidies in villages.

E‑RUPI vouchers are issued by banks to beneficiaries' mobile devices and redeemed at designated welfare service providers, showing some benefit delivery models use specific redemption points rather than BCs.

A student could contrast voucher/redemption‑centre models with bank‑account cash disbursement to see if BCs are the intended redemption/cash‑out channel in practice.

This MCQ-style snippet explicitly lists 'enables the beneficiaries in the rural areas to make deposits and withdrawals' as a facility associated with Business Correspondents in branchless areas.

A student could treat this as an authoritative textbook formulation to motivate checking RBI/Bank BC guidelines or scheme descriptions to confirm operational cash-in/cash-out roles.

Defines the basic distinguishing feature of banks as accepting demand deposits (whereas NBFIs do not).

A student could infer that agents/arrangements used by banks (e.g., BCs) are logically tied to the bank's core function of accepting/returning deposits and so seek procedural rules enabling BCs to handle such deposits/withdrawals.

Describes 'Payments Banks' as institutions that can accept deposits (current/savings) and issue debit cards—illustrating specialized bank models aimed at financial inclusion.

One could extend this by noting niche banks aiming for inclusion often rely on field agents/technology in underserved areas, so it suggests a plausible operational context where BCs provide deposit/withdrawal services.

Explains small finance/payment banks' purpose to further financial inclusion and undertake basic banking activities including acceptance of deposits in underserved areas.

A student could combine this with knowledge of branchless banking strategies to infer that banking correspondents/agents are a likely delivery channel for deposits/withdrawals in rural locations.

Describes Regional Rural Banks' mandate to develop the rural economy by providing credit and other facilities to rural clientele.

A student might reason that to deliver such facilities in remote locations, banks or their sponsored agents (e.g., BCs) would need mechanisms to handle cash transactions locally, prompting verification from operational guidelines.