FI Advantages Scheme
Financial Inclusion schemes have a number of advantages for customers, banks and business correspondents. We will see the benefits for each in detail.
- Customers need not come to the branch for carrying out basic banking transactions like small value cash deposits and cash withdrawals.
- Customers save on commuting cost and time.
- Customers can carry out the transactions at any time of the day and are not constrained by the banking hours of the branch.
- Customers can remit and withdraw a small sum of money.
- Customers need not fill up challans or cheque books for depositing or withdrawing money.
- Customers will be more comfortable in carrying out their transactions through Business Correspondent as he / she hails from the same village.
- Alternative delivery channel for the rural and semi-urban populace.
- Viable model for tapping rural savings.
- Ability to extend the outreach to far flung areas and increase the presence and facilitate transactions in the accounts.
- Reduces the work pressure at the counters.
- Transactions are carried out using a device and hence offer greater accuracy and increased security.
- The Business Correspondent can help in mobilizing savings and also assist in recovery and follow-up.
- Lower transaction cost.
- Agricultural and priority sector advances can be improved.
- The government will release the payment under NREGP (National Rural Employment Generation Programme) through the no-frills accounts where the bank will have float funds under SB portfolio.
To Business Correspondent
- Alternate source of income.
- Recognition and visibility amongst the villagers.
- Satisfaction in assisting villages to channelize the savings through the formal banking channel.