Business correspondent's - Financial inclusion issues & challenges in India

Abstract

The Business Correspondent (BC) Model was started by the Reserve Bank of India (RBI) in 2006 to advance monetary consideration in India. Under this system, banks are allowed to utilize the administrations of outsider specialists as BCs to give banking and money related administrations, for example, credit and reserve funds, on their benefit. The principle bank found difficulties in managing the BCs holding the operators, commission related issues, cash management. It further shows that it also faced challenges in managing customers. The study found that building mindfulness and raising customers interest, educating customers and fraud at customer level are the issues faced by the institutions.