BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An authorized representative of bank who offer banking services in unbanked areas
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Any person who offer banking services in unbanked areas
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An authorized representative of bank who makes profits for banks
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None of the above
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Detailed explanation-1: -Business Correspondent is an extended arm of the Bank Branch who is providing Financial and Banking services to the customers in unbanked and underbanked areas.
Detailed explanation-2: -Agent banks act on behalf of other parties in financial matters, and can work in various capacities to meet the needs of the individual, business, or another bank. They offer a variety of services that can help with conducting business both domestically and internationally.
Detailed explanation-3: -Unbanked (without brick and mortar branch of a bank)
Detailed explanation-4: -Commercial banks provide certain services to their customers in return for some commission, these are called agency functions. Some of the agency functions of a commercial bank are listed below. Collection of cheques, bills, and drafts. Payment of interest, installments of loans, insurance premium, etc.
Detailed explanation-5: -Since the RBI launched the banking Correspondent’s model in 2006 to expand banking services to the underserved, BCs have become essential to Indian banking’s last-mile service delivery.