Innovation in Rural Banking in India – Business Correspondents

Just visualize this scene. An interior place – say a village in India. An illiterate looked villager comes to a person, who pulls over a mobile phone, and a biometric scanner from a bag, punches few numbers and hands over some money to the villager and walks away.

rural bank

It’s no more an astonishing scene in villages these days. This is a good initiative taken by Reserve bank of India on bringing the unbanked population into the fold of banking.

The tech savvy person who gave the money to the villager is called the bank business correspondent. They help take banking to the door-to-door step of people in interior places India. They help mostly illiterate Indian villagers understand the basics of banking.

Many business correspondents manage two or sometimes even more jobs, but some make a living from doorstep banking.

State bank of India is the pioneer in this great initiative. Just assume in a span of two years, a single business correspondent can have 7200 customers. Yadav, for from Madhya Pradesh for example. This 40 year old was part of non-medical staff in a private hospital. Two years ago he has come across a SBI add for business correspondent, After a few phone calls, he is in a training session of how to open accounts, and operate biometric machine he is one the job. Right now, he has 7200 customers as mentioned.

It seems the job is not so difficult. Though the villagers cannot understand the banking initially it would easy for both the correspondent and the villager down the line.

Right now we have nearly 2,00,000 business consultants serving from fewbanks. This going to turn up in a great way coming further.



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