Monday, August 2, 2010

Engagement of 'for-profit' Companies as Banking Business Correspondents, on its website.





Why ‘for profit’ companies, as Banking Business Correspondents?
Reserve Bank of India, today, has placed aRe
Reserve Bank of India, today placed a Discussion Paper on Engagement of 'for-profit' Companies as Banking Business Correspondents, on its website.

Comments/Feedback have been invited by Reserve Bank of India, latest by 20th August 2010.

Why was this Discussion Paper necessary?
01)   To bring the vast majority of the unbanked population into the Banking fold.

02)   To encourage ‘for profit’ companies to enroll as Business Correspondents.

03)   To minimize frauds, as BC’s are primarily encouraged for ‘Savings and Remittance Services’.

04)   To harness the Information Technology to develop low-cost efficient BC Models.

05)    To arrive at Service Charges to be charged by various players in the BC Model.

06)   To structure a transparent complaint management system.