What are Banking Correspondents?

Banks provide basic services like deposits, withdrawals, and remittances using the services of Business Correspondents (BCs) also known as Bank Saathi.

This topic is relevant from the IAS exam point of view.

What is the BC model?

The Business Correspondent (BC) Model was initiated by the Reserve Bank of India (RBI) in 2006 to upgrade financial inclusion in India. This model allows banks to provide different assistance in terms of finances and other banking-related facilities by using 3rd party services such as banking correspondents.

What is BC In banking terms?

BC means bank representatives as mentioned in the banking terminology. The basic task carried out by Business Correspondent is helping villagers in banking transactions through different digitized ways.

Who is a banking business correspondent agent?

Business Correspondents are agents who represent banks and are responsible for delivering banking services at locations other than a bank branch/ATM.

BCs are an important asset for banks and they help in promoting financial inclusion to a great extent. They support banks in providing its limited range of banking services at an affordable cost.

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