Module: | Deposits, Reserve Ratios & Branch Authorisation
Q301: Which of the following entities are permitted to be engaged as 'Business Facilitators' by a bank?
1. NGOs and Self Help Groups (SHGs)
2. Farmers Clubs
3. Post Offices
4. IT enabled rural outlets of corporate entities
2. Farmers Clubs
3. Post Offices
4. IT enabled rural outlets of corporate entities
✅ Correct Answer: D
The correct answer is D. All listed entities are permitted to be engaged as 'Business Facilitators' (BFs). The regulatory guidelines formulated by the RBI explicitly allow commercial banks to use non-governmental organizations (NGOs), Self Help Groups (SHGs), Farmers Clubs, Post Offices, and IT-enabled rural outlets of corporate entities as intermediaries under the BF model.
The primary role of these facilitators is purely non-financial; they assist the bank with borrower identification, collection of applications, creating financial awareness, and generating leads in unbanked or remote areas, strictly without executing actual financial transactions or handling cash.
The primary role of these facilitators is purely non-financial; they assist the bank with borrower identification, collection of applications, creating financial awareness, and generating leads in unbanked or remote areas, strictly without executing actual financial transactions or handling cash.