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 rural areas to make deposits and withdrawals. Select the correct answer using the code given below.

Both statements describe genuine services of the Business Correspondent model, so the answer is C. Banks in branchless villages appoint BCs as their agents. They operate point-of-service devices, usually Aadhaar-enabled biometric terminals, so basic banking reaches places without a branch.

Statement 1 is correct. Through BCs, beneficiaries can receive government subsidies, pensions and other social security payments, including under Direct Benefit Transfer (DBT), without travelling to a town branch.

Statement 2 is also correct. BCs accept deposits, process withdrawals and handle small remittance and account services for rural customers. This is the core of financial inclusion.

• Option A is wrong because it ignores the deposit and withdrawal function, which is equally central to the model.
• Option B is wrong because it leaves out the subsidy and benefit payment function.
• Option D is wrong because both statements are valid.

Core concept: branchless banking and the BC model, which RBI guidelines introduced in 2006 and which was later linked to the Pradhan Mantri Jan Dhan Yojana. For Mains, this sits under GS-III on financial inclusion and last-mile delivery of welfare.

Trap: candidates often assume BCs can only open accounts, or that cash services are restricted, and pick A. Both functions are permitted.