Module: | Priority Sector, Consumer Protection & Digital Lending
Q93: Consider the following statements, regarding the mandated frequency of Board reviews for various banking channels:
1. The operations of Business Correspondents (BCs) must be reviewed at least once every six months.
2. The review of BCs aims to ensuring that prefunding requirements for Corporate BCs progressively taper down.
3. The operation of doorstep banking facilities must be reviewed on a quarterly basis during the first year of operation.
4. After the first year, the review of doorstep banking facilities is to be conducted on an annual basis.
2. The review of BCs aims to ensuring that prefunding requirements for Corporate BCs progressively taper down.
3. The operation of doorstep banking facilities must be reviewed on a quarterly basis during the first year of operation.
4. After the first year, the review of doorstep banking facilities is to be conducted on an annual basis.
✅ Correct Answer: B
The correct answer is B. Statements 1, 2, and 4 are correct.
Under the RBI guidelines for outsourced banking models, the operations of Business Correspondents (BCs) must be rigorously reviewed by the Bank's Board at least once every six months.
A key regulatory focus during this review is to ensure that the prefunding requirements imposed on Corporate BCs are progressively tapering down to a target of 15%. Regarding Doorstep Banking, Statement 3 is strictly incorrect: the regulations mandate that the Board must review the operation of doorstep banking facilities on a 'half-yearly' basis during the first year of its operation, not quarterly.
Statement 4 is correct, as the frequency transitions to an annual basis after the successful completion of the first year.
Therefore, Option B represents the only accurate combination of regulatory facts.
Under the RBI guidelines for outsourced banking models, the operations of Business Correspondents (BCs) must be rigorously reviewed by the Bank's Board at least once every six months.
A key regulatory focus during this review is to ensure that the prefunding requirements imposed on Corporate BCs are progressively tapering down to a target of 15%. Regarding Doorstep Banking, Statement 3 is strictly incorrect: the regulations mandate that the Board must review the operation of doorstep banking facilities on a 'half-yearly' basis during the first year of its operation, not quarterly.
Statement 4 is correct, as the frequency transitions to an annual basis after the successful completion of the first year.
Therefore, Option B represents the only accurate combination of regulatory facts.