SSC Economics Sample Paper NCERT Sample Paper-2

  • question_answer
    Which of the following is introduced by banks to increase financial inclusion?

    A) Stimulus package

    B) Internet Banking

    C) Business correspondent

    D) Corporate Banking

    Correct Answer: C

    Solution :

    Business Correspondents are local bank representatives, who are taking banking to the doorstep of people in far-flung villages across the country. They help mostly illiterate Indian villagers understand the basics of banking in line with the Reserve Bank of India's 2009 guidelines on bringing the unbanked population into the fold of banking. They help villagers to open bank accounts. They help villagers in banking transactions, (deposit money, take money out of savings account, loans etc.) The Business Correspondent carries a mobile device. The villager gives his thumb impression or electronic signature, and get the money. Business Correspondents get commission from bank for every new account opened, every transaction made through them, every loan-application processed etc. Though still a relatively new concept, India already has more than 200,000 business correspondents who are as diverse as their rural customers: they could be carpenters, school teachers, village clerks, farmers or rural women with no education whatsoever. Earlier, pigmy agents, or agents of micro branches of banks who travel from village to village, were the only contact points for a bank. If people missed them when the agents came around, there was no alternative but to wait until they came back. Not anymore. Banks have deployed about 1.2 lakh Business Correspondent Agents/Bank Mitras (BCAs/BMs) to provide banking services to unbanked households of the country under Pradhan Mantri Jan Dhan Yojana (PMJDY). Bank Mitra are those individuals who acts as an agent of the bank at places where it is not possible to open a brick and mortar branch of the bank. Bank Mitra basically acts like the representatives of banks and provides all kind of assistance in opening an account under the PMJDY scheme.

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