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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Business Correspondent Model: Are Co-op. Banks more realistic choice for BC adoption?

India has been witnessing poverty and exclusion for decades. A large segment of the society, those belonging to low income groups, have little or no access to formal financial services. In this regard, in the early 2000s, the agenda for financial Inclusion was emphatically underlined and gained prominence. Since then, over the years, the Indian…

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