Who/What is Business correspondent?

  • Business correspondents are bank representatives.
  • They help villagers to open bank accounts.
  • They help villagers in banking transactions. (Deposit money, take money out of savings account, loans etc.)
  • The Business Correspondent carries a mobile device.
  • The villager gives his thumb impression or electronic signature, and get the money.
  • Business Correspondents get commission from bank for every new account opened, every transection made via them, every loan-application processed etc.

Who can become Business correspondent for Banks?

  • Non-Governmental Organisations(ngos)
  • Self Help Groups (shgs)
  • Micro Finance Institutions (mfis)
  • Post Offices
  • Insurance agents
  • Panchayats
  • Civil Society Organisations (csos)
  • Farmers' clubs
  • Community based organisations
  • Cooperatives societies
  • Village Knowledge Centres
  • Agri Clinics/ Agri Business Centers
  • Krishivigyankendras
  • Khadi and Village Industries units
  • Corporate entities with IT outlets in rural parts.

Functions of Banking Business Correspondents?

  • Create awareness about savings.
  • Give advice to villagers, about how to save/invest money and how to arrange/manage loans.
  • Help the villagers to open bank accounts.
  • Collect loan applications, forward them to bank.
  • Preliminary processing of loan applications for example: verification of person's identity, home-address etc.
  • Help the Self Help Groups (SHG), to get loans.
  • Help the bank to collect emis and recover loan money.

Why Business Correspondents system?

  • If Financial inclusion means "open bank accounts for poor people."
  • Then what's the big deal, just open a damn account!Not so easy.
  • India has around 6 lakh villages. Most of them don't have bank branches.
  • Ok so Why can't banks open branches in every village?
    • No profit
      • Because Administrative costs will be high= Building rent, telephone, electricity, staff salary, security guards.
      • On the other hand volume of business is very low in village areas = amount of money deposited, loans taken.
      • Means there is No profit. Actually it'll lead to heavy losses.
    • Reluctant staff
      • In many villages, there is no electricity, no good schools/drinking water, naxalite problem= Bank staff doesn't want to serve there.
      • Therefore banks don't like to open branches below district HQ or Tehsil level. Now comes the problem.
    • Hardships faced by poor's
      • A poor man lives in remote village.
      • This man has deposited some Rs.2000 in a bank his tehsil.
      • Now, He wants to take out some money from his bank account.
      • So He'll have to make a trip for 10-20 kms =travel =time and cost.
      • He is illiterate so he doesn't know how to fillup bank slips, other paperwork. He needs to ask for help here and there in the bank office.
      • And most banks/post-offices don't treat poor people with respect or priority like they do with regular customers.
      • So, he may have to wait for many hours, move from this table to that table, before he gets his money.
      • = he cannot return to his village and do his daily job/work.
      • = his one day's income is lost.
      • Same process repeats, when this man wants loan to buy a new cow, pumpset, seeds or fertilizers.
      • One the other hand, local money lenders in his village, give money quickly, without asking many questions or requiring him to fillup two dozen application forms. (but then they extract 36% compound interest from this poor man, thus making his life a living hell.)

Step to start a Bank BC

  • BC will open a saving account in nearest BOB Branch.
  • He will open a OD account and if Branch don't allow send his/her Photo, Aadhar, Pan NO, mail id, phone no, Linked Branch id etc. to Achariya.fi@gmail.com
  • Head office will provide an Appointment letter to regional office for permission of OD account. Same letter will also be provided to BC by Head office.
  • After opening of OD account, you have to send the complete excel format to achairya.fi@gmail.com for KO code permission along with payment deposit slip by your side.
  • Head office will send BC details to regional office for KO code and maximum in one week KO code will be generated.
  • Bc has to set up a FD in the concern Branch as security and back will provide interest on this FD.

What type of account will be opened by BC?

Jan dhan account with zero balance.

What is RD (Recurring deposit) account?

In this account, customer can deposit a fix amount each month and bank will provide interest on it.

What is the rate of Commission of Withdraw and deposit?

Withdraw -- Commission Rate Rs. 0.40% withMinimum Rs. 1/- and maximum Rs. 20/-
Deposit - Commission rate Rs. 0.40% with minimum Rs.1/- and maximum Rs. 25/-

Hardware Requirement

Computer/Laptop, Printer, Bio-metric and PIN PAD.

How BC can withdraw money of Customer?

There are two methods of withdrawing payment. One is by ATM card of any bank by using Pin pad device and secondly he can withdraw amount of any bank in which Aadhar of customer of customer has been updated.

Payment by cheque or payslip.

Payment cannot be done by cheque or payslip.

Working Time of BC.

BC can do transaction till 8:00 PM. Portal will be open till 11.00 pm

Document required from BC.

2 Photo, Aadhar card, PAN No, Electricity Bill/Voter card, Police verification, MC/Sarpanch Character certificate, 10 Rs. Stamp paper.

What company will provide?

Company will provide Banner, t-shirt and Bio-metric to BC.

When commission will be transferred?

Commission of each month will be transferred in BC OD after next 15 date of next month. For example, for month August, commission will be transferred upto 15 September.

How day transaction report can be found?

Day Transaction reports summery can be print from bc portal (but after 7.00 pm)

Who can Open Bank BC?

NGO/Trust Acts, Cooperative society, Post offices, Retired Bank employees, Ex-service men., Retired Govt. Employees, Individuals owners of kirana/medical/fai price shop owners, Insurance companies, Individuals who own petrol pumps, Retired teachers, Individual members of farmer's clubs, Kiosks, CSC, Auto dealers, tractor dealers.

What is financial inclusion?

Giving formal banking services to poor people in urban & rural areas.
Promoting habit of money-savings, insurance, pension-investment among poor-people.
Help them get loans at reasonable rates from normal banks. So they don't become victims in the hands of local moneylender cum thugs.