Hyderabad: Business Correspondents (BCs), who have been seeing limited activity due to the lockdown, are once again back in the reckoning with the government announcing a schedule for withdrawals of the relief being given through the PMJDY accounts.
Hyderabad-based Sub-K Impact Solutions is one such corporate Business Correspondent company. It recruits agents to do key works of the link banks- cash withdrawals, deposits, transfers and also handling personal and accident insurance covers under the Atal Pension Yojana at a low cost.
“We have about 5,000 agents in ten States who have their own enterprises and therefore will be in a position to divert the cash for withdrawals by account holders. The link banks reimburse them and pay a commission for handling the transaction on their behalf. Business Correspondents ensure people get the basic banking services without the need to visit a bank,” said Sashidhar Thumuluri, Managing Director and Chief Executive Officer, Sub-K Impact Solutions.
“Business Correspondents work on behalf of banks. Earlier, there was some confusion on allowing the BCs to function during lockdown as they operate from their respective enterprises. With clarity on the role of BCs, they are now being allowed to operate,” he said.
According to him, relief of Rs 500 extended by the government under the PMGY will be deposited into Jan Dhan Accounts of women. To ensure that people do not crowd the banks or the BCs, the withdrawals are staggered and will go on till April 9. The BCs also have a role bringing MGNREGS wages and direct benefit transfer given to farmers, he said.
“On monthly basis, about 5 lakh customers are served and there would be about 10 lakh transactions and the value of these will be about Rs 500 crore. However, the value of the transactions will go up now,” said Thumuluri adding the company, depending on the agreement with the bank, will also assist the BCs with required cash. The company, in such cases, gets cash handling charges. In other cases, the BCs divert the cash from their respective sources to allow withdrawals by the beneficiaries. The BCs withdraw it and pay to the beneficiaries through the Aadhaar Enabled Payment System or through the Rupay.
“The BC model is successful in rural areas. The local kirana store or a hotel converts into a BC. There is an element of trust as villagers deal with people they know,” he said.
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