Correct Option (C)
The passage highlights that for banking outreach to succeed and achieve meaningful financial inclusion, banking correspondents (BCs) must offer more than just basic bank accounts. It explicitly states the need for them to provide financial education and literacy, alongside products such as accident and life insurance and micro pension schemes. This directly implies that BCs require a diverse skill set to effectively serve the comprehensive financial needs of the hinterland population.
Incorrect Options:
The passage identifies various challenges in bringing people into the banking fold but does not state that these efforts are unsuccessful. It rather suggests measures to improve their success.
While an increased number of banking correspondents might contribute to outreach, the passage primarily focuses on enhancing the scope of services and skills of existing or future BCs, rather than merely their quantity, as the most crucial factor for meaningful financial inclusion.
The passage mentions regulatory restrictions on BCs serving only one bank as a potential hurdle. However, it presents this as one among several factors, and not the sole or most crucial impediment to better banking outreach. The primary emphasis is on better incentives, financial education, and offering a wider range of products, which points to skill diversity rather than the number of banks served.