The Business Standard article “Boots on the Ground Need Mending” by Raghu Mohan highlights the challenges faced by business correspondents (BCs). As the Pradhan Mantri Jan-Dhan Yojana (PMJDY) marks its 10th anniversary, the BC channel for financial inclusion is calling for pay raises, better investments, and an end to punitive penalties. The issues are many: serving customers at bank branches is costly, and while the government provides incentives for direct benefit transfers, these don’t reach the BC network. Worse, BCs face penalties of around ₹1,000 per month for inactivity over two months, and they can be terminated with a ₹10,000 fine for using another bank’s portal or app.
Disciplines like insurance and mutual funds have benefited from such studies, leading to the development of more robust models and enhanced service delivery. It will not only help streamline the BC model but also strengthen the broader financial inclusion landscape
Seema Prem, Co-founder & CEO FIA Global
View the entire article to understand further how business correspondents are being challenged in today’s competitive environment.
