The Business Correspondent Model: Expanding Financial Access in India
The Business Correspondent (BC) model is a crucial component of India's financial inclusion strategy, aiming to extend financial services to unbanked and underserved populations in rural and remote areas.
Let's delve deeper into how this model works:
1. What is a BC?
A BC acts as an intermediary between a bank and its customers, providing basic financial services at the last mile. These individuals or entities are typically local entrepreneurs or community members who understand the local context and have the trust of the community.
2. Services Offered by BCs:
BCs typically offer a range of services, including:
Account opening
Cash deposits and withdrawals
Money transfers
Micro-loans
Micro-insurance
Bill payments
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