Volume : 4, Issue : 9, September - 2015

CHALLENGES IN BUSINESS CORRESPONDENT MODEL - AN EMPIRICAL STUDY

Thiruma Valavan A

Abstract :

<p>&lt;p&gt;The salient features of BC model include identifying the borrowers, collection and verification of loan applications, creating awareness on various financial services, products and transactions, post-sanction monitoring, collection of small value deposits etc. The best advantage through BC model is, on the one hand banks get vast exposure to the rural population without its physical presence in terms of anches while on the other the unbanked people belonging to the remote areas get easy access to basic banking facilities at their doorstep by the person among themselves. It also promotes and nurtures SHGs/JLGs wherever relevant and works as a potential contributors in creating awareness about various financial operations. BCs are nothing but the representative of banks who provides banking services through use of ICT based solutions in his own or nearby villages. Banks give remuneration and or transaction based commission to him against his service.&lt;/p&gt;</p>