Deepening Financial Access in India – A Blue Print for Commercial Banks Using Business Correspondents and Business Facilitators

Authors: Bindu Ananth & Asha Krishnakumar

Deepening financial access in a viable manner is possible with commercial banks expanding and strengthening the existing BCs and BFs that are the local touch points at the front-end. The comprehensive set of Business Correspondents that are established at the village level could be considerably strengthened by building their capacity through training; enabling them with appropriate technology; infusing them with sufficient working capital; providing them a line of credit to originate loans at the local level; and equipping them to guarantee the first loss. And a substantial part of the expenses of the BCs and BFs can be suitably recovered. This paper offers insights into what a commercial bank can do to deepen financial access in a viable manner using the BC/BF model and more.

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