In what would herald a radical shift from the brick-and-mortar model of banking, State Bank of India (SBI), the country’s largest bank, has decided to hire 15,000 new banking correspondents (BCs) in 2010-11, its chairman OP Bhatt told FE.
SBI’s grand plan on BCs is to add thousands of new correspondents to its network every year, a move that would dramatically expand rural banking.
The network of BCs would have a direct linkage to sundry social security schemes, Bhatt said. Pilot projects in states like Andhra Pradesh have shown that the BC model can enhance the utility of such schemes.
“To make the business correspondents network the most credible and useful link between millions of farmers in rural areas and the bank branches, it will have to be expanded in a big way,” Prime Minister’s Economic Advisory Council chairman C Rangarajan said. SBI’s move is in tune with the Budget decision to provide banking facilities in all domiciles with more than 2,000 people.
The prime role of BCs would be to accept deposits and remit money. They would also provide basic financial services like insurance to the half-a-billion low-income rural people who are outside the banking network.
Starting with India Post, SBI has roped in organisations with pan-India presence like ITC, Reliance Dairy Foods, Drishtee Foundation and Zero Microfinance & Savings Support Foundation to expand its BC network.
According to Bhatt, the bank would also rope in petrol pump operators, rural kirana shops, retired teachers and agents of small saving scheme as BCs.
What complements the BC network would be the technology platform being set up. “Apart from opening more branches, we plan to serve the customer better by leveraging all other channels--ATMs, Internet banking, mobile banking…” said Bhatt. The BCs can act as a mini-bank branch with facilities of cash withdrawals and deposits up to Rs 10,000. The BC is connected to a local branch that supervises the functioning of all BCs in the area.
SBI has covered more than 50,000 un-banked villages, including in far flung North Eastern, Eastern and Central parts of the country. Currently, the bank spends Rs 115 on each account managed by the BC and the return may be around Rs 3, as the average bank balance of a BC account is estimated to be around Rs 30.
Wednesday, March 31, 2010
SBI reaches out to the unbanked
Industry Research Reports
LIC Term Insurance or Pvt Life Insurance Term Plan ? Which is the best term insurance in India ? Which Insurance company has the best cla...
આજકાલ કોઈપણ સમસ્યા હોય લોકો એન્ટિબાયોટિક્સ અંગ્રેજી દવાઓ લેવાનું વધુ પસંદ કરતાં હોય છે કારણ કે આજની પેઢીને આપણા જુનવાણી નુસખા વિશે જાણ હોત...
Introduction The Japanese began using candlestick patterns for over 100 years before the West developed the bar and point and figure syst...
મ્યુચ્યુઅલ ફંડ્સના સોદામાં ઉચ્ચ સ્તરની પારદર્શકતા આવે તે હેતુથી શેરબજાર નિયમનકારી સંસ્થા સેબીએ એજન્ટ્સને ચૂકવેલું પુરેપુરું કમિશન જાહેર કરવ...
સેબીએ કોમોડિટી ડેરિવેટિવ્ઝ માર્કેટના નિયમનને કડક બનાવ્યાના એક વર્ષ પછી કોમોડિટી એક્સ્ચેન્જિસની વૃદ્ધિના પગલાની શરૂઆત કરી છે. MCX અને NCDEX ...
સીબીઆઈ કોર્ટે બુધવારે એફટીઆઈએલ જૂથના સ્થાપક જિજ્ઞેશ શાહને 26 સપ્ટેમ્બર સુધી પોલિસ કસ્ટડીમાં રાખવા આદેશ આપ્યો હતો. સીબીઆઈએ 30 સપ્ટેમ્બર સુ...
Equity Linked Savings Scheme (ELSS) is the best tax saving (Section 80C) investment option for investors looking to create long term w...
While investing in Mutual Funds, you go through fund reviews, watch funds performance, track historical performance, find out what ex...
મેનેજમેન્ટ સ્નાતકો માટે ઇન્વેસ્ટમેન્ટ બેન્કિંગમાં કારકિર્દી હંમેશા આકર્ષક રહી છે. જોકે, હવે આ સેક્ટરના પડકારોને લીધે ઘણા મેનેજમેન્ટ સ્નાત...
The Federal Open Market Committee (FOMC), a branch of the US Federal Reserve Board that decides US monetary policy, meets eight times ever...