Banking · Banking Delivery Channels

Statement 1: The Brick and Mortar delivery model remains the most trusted channel for high-value corporate banking and complex wealth management services in India because it allows for face-to-face interaction and relationship building which digital channels cannot fully replicate at this stage. Most large public sector banks continue to invest in physical branches to maintain their presence in strategic urban locations and to comply with the Reserve Bank of India mandate that requires banks to open at least 25 percent of their new branches in unbanked rural centers. This physical presence also serves as a critical branding tool and a hub for resolving complex customer grievances that automated chatbots are unable to handle effectively. The operational cost of a physical branch includes rent, staff salaries, security, and electricity, making it the most expensive delivery model per transaction. Statement 2: Mobile Banking as a delivery model has evolved from being a simple SMS-based information service to a comprehensive transactional platform that supports UPI, IMPS, NEFT, and RTGS for instantaneous fund transfers. According to recent National Payments Corporation of India data, mobile banking transactions have surpassed ATM withdrawals in terms of volume, indicating a clear shift in consumer behavior toward digital-first banking. This model relies heavily on the proliferation of smartphones and high-speed 4G and 5G internet connectivity across the country, which has been supported by various government initiatives like Digital India. Security features such as biometric authentication, two-factor authentication, and end-to-end encryption are essential components to protect customers from cyber frauds and unauthorized access. Statement 3: The Doorstep Banking delivery model is a specialized service predominantly designed for senior citizens and differently-abled persons to provide them with basic banking facilities like cash delivery, cheque pick-up, and life certificate submission at their residence. This model is often implemented through a common service provider shared by multiple public sector banks to reduce the individual cost of operation and ensure wide coverage in metropolitan areas. While it offers high convenience, the fees for these services are regulated by the Reserve Bank of India to ensure they remain affordable for the target demographic. In this model, the bank remains responsible for the safety of the cash during transit and the integrity of the transaction performed by the doorstep agent. Identify the correct evaluation of the statements provided above based on the current banking environment.