Business Correspondents

The Financial Inclusion (FI) Project was started during 2012-13 with 127 villages and for the FY 2020-21 it is in operation in 239 villages through Business Correspondents, viz.

  • Guntur District: 147,
  • East Godavari District: 45 and
  • West Godavari District: 47

M/s Coromandel Info Tech India Ltd. and M/s Magnot Consultancy Services Pvt. Ltd. are the Technical Service Providers (TSPs).

All our Business Correspondents are providing by providing Door-To - Door services to the people.

Banking Services through BCs during COVID-19, Pandemic

Even in the difficult times of COVID-19, pandemic our Business Correspondents (BCs) provided continuous banking services to the rural people and has shown their determination towards the work. They have selflessly involved in disbursing various DBT amounts released by Central/State Govt., in the lockdown period. The below table depicts their performance during lockdown period.

Month-Year Transactions Business Volume (Rs.Lakh)
Apr-20 2,63,759 6388.04
May-20 3,97,626 10789.73
Jun-20 3,66,286 10353.80

We feel proud that for the FY 2020-21, our BCs have shown tremendous performance and registered remarkable transactions growth ever since the launch of Financial Inclusion Project.

Bank Performance through Business Correspondents

Year Total BC points Transactions Volume of Business in Rs in Cr. Transaction Cost Rs.
2018-19 199 14,98,492 429.35 17.98
2019-20 211 19,00,695 685.07 16.08
2020-21 239 29,82,800 1131.26 14.35

The transaction cost decreased from Rs.16.08 during 2019-20 to Rs.14.35 during 2020-21 registering a decrease of 10.76%.

Apart from concentration on Banks business, we are supporting all the Business Correspondents (BCs) to lead financially healthy life and taking steps for their economical growth.

Year Average BC Commission Rs. Per BCs monthly average Transactions Per BCs monthly average Volume Rs. Lakhs
2018-19 8181 656 18.61
2019-20 8320 756 27.58
2020-21 11,460 1147 43.31

IIBF Certification for BCs

Business Correspondents are playing a crucial role in unhindered delivery of financial services to the needy during the pandemic and have emerged as one of the key enablers in achieving the objectives of financial inclusion.

Accordingly RBI felt that it is desirous that their capabilities are strengthened as per the evolving scenario, for which BC Certification examination is an important initiative. In the wake of the COVID-19 pandemic, the timeline for completion of BC Certification has been extended to December 31, 2021

Abiding to the RBI guidelines, Bank has taken initiation in achieving 100% graded IIBF certification to all the Business Correspondents (BCs). As on 31st March 2021 a total of 224 BCs have passed IIBF examination out of the total BCs.

We are training all the remaining Business Correspondents to and will complete the BC certification within the specified timeline.

Training programmes to BCs

Bank is conducting meetings with Business Correspondents on quarterly basis to review their performance and guide them in various aspects.

Bank has conducted Capacity Building Programmes to Business Correspondents (BCs) to all the BCs and also trained them for qualifying in IIBF examination.

During the COVID-19 pandemic also, Bank has also conducted a One-Day Training programme for all the Business Correspondents (BCs) in Virtual mode. All our BCs have participated actively in the campaign.

NABARD has supported the One-Day training programme to our Bank Business Correspondents (BCs) under the grant assistance of Financial Inclusion Fund (FIF) for the FY 2020-21.

The broad objective of the FLCs is to provide free financial literacy/education and credit counselling.

  • They have to provide financial counselling services through face-to-face interaction as well as through other available media like e-mail, mobile, etc. as per convenience of the interested persons, including education on responsible borrowing, proactive and early savings, and offering debt counselling to individuals who are indebted to formal and/or informal financial sectors;
  • They need to educate the people in rural and urban areas in their regional language with regard to various financial products and services available from the formal financial sector;
  • They should make the people aware of the advantages of being connected with the formal financial sector ;
  • They have to explain and formulate debt restructuring plans for borrowers in distress and recommend the same to formal financial institutions, including cooperatives, for consideration ;
  • They should take up any such activity that promotes financial literacy, awareness of the banking services, financial planning and amelioration of debt-related distress of an individual;

For this purpose, Bank has appointed FOUR Counsellors for the 3 Financial Literacy Centers (FLCs) at THREE districts viz., Guntur, East Godavari and West Godavari. They will conduct Financial Literacy Awareness Camps (FLACs) in every nuke and corner of our service and non-service area villages to deliver Financial Literacy to unreached rural public.

Till date Bank has covered 3020 villages