Question

Consider the following statements about BAPU

1. It needs biometric authentication for beneficiary identification
2. No Need for Bank account for transferring benefits to the beneficiaries

Which of the above are correct?

• A. 1 only
• B. 2 only
• C. Both 1 and 2
• D.
  None of the above

Answer 1

The correct option is C Both 1 and 2

Under BAPU model, beneficiaries certify their identity through scanning their thumbprint on a POS machine while buying the subsidised product – say kerosene at the PDS shop. This reduces leakages considerably.

Presently, the JAM agenda is facing the last-mile challenge of getting money from banks into beneficiaries’ hands, especially in rural India. Until Business Correspondent (BC) network is developed and mobile banking spreads, the BAPU model can be used to reduce leakages without the risk of exclusion errors.