Business Correspondent Resource Council (BCRC) has suggested a slew of critical measures that could be announced in the upcoming budget to support Bank Mitras and Corporate Business Correspondents (CBCs) in India.

In a letter to the Department of Financial Services (DFS) M Nagaraju, the BCRC CEO D Tripathy said these measures are crucial for enhancing their infrastructure and ensuring their financial sustainability:

The measures suggested include enhanced financial support and incentives to further expand the reach of Bank Mitras in underserved areas, ensuring no individual is left without access to banking services.

BCRC has also suggested the establishment of a dedicated infrastructure grant fund specifically tailored for Bank Mitras. “Given the perpetual necessity to upgrade their hardware, such a fund would serve as a vital resource to ensure these essential frontline workers have access to the latest technology and equipment”, Tripathy said.

Through financial support, it will ensure that Bank Mitras, who serve as essential frontline workers in delivering financial services, can operate effectively without being hindered by requirement for capital, he added.

The BCRC has also suggested the establishment of India Business Correspondent Equity Fund (IBCEF) on the lines of the IMEF (India Microfinance Equity Fund), IBCEF (India Business Correspondent Equity Fund) may be created as a consortium between the Indian Government and Banks/FIs, he suggested. 

“Creation of a dedicated fund for providing equity to CBCs will help them to maintain growth and achieve scale and efficiency in operations. This will also reconfirm that financial inclusion is a national priority and strengthen the impact of financial inclusion in India,“ he added.

These initiatives will empower Bank Mitras and CBCs, particularly those in remote or underserved areas, to thrive economically and make enduring contributions to the communities. 

By prioritising investments in infrastructure and equity, these initiatives will enhance the resilience and operational effectiveness of Bank Mitras and CBCs, which is crucial for advancing financial inclusion and fostering socioeconomic development across the nation, Tripathy added.