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›Money›With a commission of Rs 15, RBI’s Business Correspondents model might be failing Government's financial inclusion plans
With a commission of Rs 15, RBI’s Business Correspondents model might be failing Government's financial inclusion plans
Synopsis
In 2006, the RBI tried to increase banking outreach and pick up financial inclusion by introducing the Business Correspondent model to the under-banked population. Today, the model is grossly unviable.
India has around 89.5 crore people living in rural areas. The number of ATMs? 5%. According to an RBI data, out of 6 lakh villages in India, less than 30,000 villages have ATMs.To ensure financial inclusion to the last-mile consumers bereft of digital payments or even ATMs at the least, the Reserve Bank of India came up with the Business Correspondents (BC) model in 2006. BCs are retail agents deployed by banks for providing banking services at
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