Train business correspondents: RBI

Mumbai: As banks are beginning to implement financial inclusion programme in a major way through the business correspondent model, Reserve Bank of India (RBI) governor D Subbaro has emphasised that the banks should train their business correspondents (BCs) before undertaking their assignments in the unbanked areas.  While reviewing the financial inclusion programmes of south-based banks on Tuesday, Subbarao pointed out that without adequate training most of the BCs will not be able to gain confidence among the locals. “The financial inclusion programme through BCs has not picked up at the required level as they are yet to win confidence among the micro borrowers. Let the banks train these BCs first before sending them to prospective customers. The training can be imparted by the banks through institution like Indian Institute of Banking & Finance (IIBF) and the cost can be borne by the banks and Nabard,” Subbarao said, while talking to the senior officials of the banks. The course fee for such training is estimated to be R4,000 per person and Nabard can refinance 75% of the fee under a special scheme being run by the institution. Some of the other issues that came up for discussion during the interaction, include ensuring strong credit linkage so as to make the ongoing financial inclusion programme more meaningful and wholesome. He said, “Merely opening no-frills account will not do”, and asked the banks to emphasise on financial transactions too. Moreover, he stressed that the banks should think of going beyond FI by selling their micro insurance and micro investment products through their branches. Subbarao also talked about financial literacy programme for the customers, said officials who were present in the meeting. KC Chakrabarty, deputy governor, RBI, was also present during the meeting.

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