Financial inclusion and BC Model in India – Progress So Far

Financial inclusion (FI) in India was introduced in the year 2005 by RBI, highlighting its importance and role in the Annual Policy Statement. The concept of this model was to reach out to the under-banked and unbanked population in India while serving them with the basic amenities in banking. Considering a major population that remains…

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The Concept of Financial Inclusion

With the banking sector shifting towards digital channels to serve its customers further, there is still a large group that remains unbanked even today. Unbanked or under-banked people are those that are deprived of accessing minimal financial services or do not receive affordable banking facilities. An astonishing fact by the World Bank highlights, “Around 2…

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Financial Inclusion in India – The Rise of Business Correspondent Model

In January 2006, the Reserve Bank of India issued a set of rules enabling banks to utilize two classes of middlemen for the banks and financial institutions to serve the unbanked or under-banked population with basic financial facilities – Business Correspondents (BCs) and Business Facilitators (BFs). Under financial inclusion schemes, the BCs represent bank as…

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