Economics · Economy

Statement 1: The requirement for financial inclusion in rural India is being met through the deployment of Business Correspondents (BCs) who act as intermediaries for basic banking services. These BCs provide doorstep banking to the unbanked population who otherwise have limited access to physical branches due to geographical barriers. They are authorized to perform a variety of tasks including account opening, cash deposits, and withdrawals using biometric authentication. The model has proven to be cost effective for banks compared to setting up full-fledged branches in remote villages. In 2025, the BC network has expanded significantly to include local Kirana stores and Self-Help Groups (SHGs). Statement 2: Consumer requirements for cross-border remittances have shifted toward blockchain-based platforms that offer near instantaneous settlement and significantly lower fees compared to the SWIFT network. Traditional banks are now integrating with Ripple or other distributed ledger technologies to retain their market share in the remittance corridor. This transition is driven by the requirement for transparency in exchange rates and the elimination of intermediary bank charges that were common in legacy systems. Consumers now demand real-time tracking of their funds from the point of origin to the final destination. The Reserve Bank of India has introduced a regulatory sandbox to test these technologies while ensuring compliance with anti-money laundering (AML) guidelines. Statement 3: In a newly developed type of consumer interaction, the requirement for emotional intelligence in AI chatbots has become a primary differentiator for retail banks seeking to improve customer satisfaction scores. These bots use natural language processing (NLP) to detect customer frustration or anxiety and adjust their tone and response strategy accordingly in real time. If a bot detects a high level of distress, it can seamlessly escalate the conversation to a human agent while providing a full summary of the interaction to ensure continuity. This fulfills the consumer requirement for empathy and understanding even during digital interactions. The technology also allows for the delivery of complex financial advice in a conversational manner that is easy for the average consumer to digest. Which of the following describes the validity of the statements provided?