3/7/2015

BankersAdda:AbriefdetailonBusinessCorrespondent/BankingCorrespondent

AbriefdetailonBusinessCorrespondent/BankingCorrespondent
HelloReaders,
Here,wearepresentingyouallabriefon"BusinessCorrespondent/
BankingCorrespondent."Hopeyoulikethepost!!!
FinancialInclusionbyExtensionofBankingServicesUseofBusiness
Correspondents
Withtheobjectiveofensuringgreaterfinancialinclusionandincreasingthe
outreachofthebankingsector,RBIdecidedinpublicinteresttoenable
bankstousetheservicesofNGOs/SHGsandMicroFinanceInstitutions
(MFIs)asintermediariesinprovidingfinancialandbankingservicesthrough
theuseofBusinessFacilitatorandCorrespondent.
BusinessCorrespondent
Underthe'BusinessCorrespondent'Model,NGOs/MFIssetupunder
Societies/TrustActs,SocietiesregisteredunderMutuallyAidedCooperative
SocietiesActsortheCooperativeSocietiesActsofStates,Inengagingsuch
intermediariesasBusinessCorrespondents,banksshouldensurethatthey
arewellestablished,enjoyinggoodreputationandhavingtheconfidenceof
thelocalpeople.Banksmaygivewidepublicityinthelocalityaboutthe
intermediaryengagedbythemasBusinessCorrespondentandtake
measurestoavoidbeingmisrepresented.

RolesofaBusinessCorrespondent
Businesscorrespondentsarebankrepresentatives.
Theyhelpvillagerstoopenbankaccounts.
Theyhelpvillagersinbankingtransactions.(depositmoney,take
moneyoutofsavingsaccount,loansetc.)
TheBusinessCorrespondentcarriesamobiledevice.
Thevillagergiveshisthumbimpressionorelectronicsignature,
andgetthemoney.
BusinessCorrespondentsgetcommissionfrombankforevery
newaccountopened,everytransactionmadeviathem,every
loanapplicationprocessedetc.

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3/7/2015

BankersAdda:AbriefdetailonBusinessCorrespondent/BankingCorrespondent

ThearrangementswiththeBusinessCorrespondentsshallspecify:
suitablelimitsoncashholdingbyintermediariesasalsolimitson
individualcustomerpaymentsandreceipts.
therequirementthatthetransactionsareaccountedforand
reflectedinthebank'sbooksbyendofdayornextworkingday.
allagreements/contractswiththecustomershallclearlyspecify
thatthebankisresponsibletothecustomerforactsofomission
andcommissionoftheBusinessFacilitator/Correspondent.
RedressalofGrievancesinregardtoservicesprovidedbyBusiness
Correspondent
BanksconstituteGrievanceRedressalMachinerywithinthebank
forredressingcomplaintsaboutservicesrenderedbyBusiness
Correspondents.Thenameandcontactnumberofdesignated
GrievanceRedressalOfficerofthebankismadeknownand
widelypublicizedbyrespectivebanks.Thedesignatedofficer
shouldensurethatgenuinegrievancesofcustomersare
redressedpromptly.
Ifacomplainantdoesnotgetsatisfactoryresponsefromthebank
within60daysfromthedateofhislodgingthecomplaint,hewill
havetheoptiontoapproachtheOfficeoftheBanking
Ombudsmanconcernedforredressalofhisgrievance/s.

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