The Reserve Bank of India intends to bring in a new set of rules on the Business Correspondent (BC) system as a step ahead in its aim of speeding up financial inclusion in all unbanked parts of India.
The BC system was introduced by the RBI in 2006 in which NBFCs that don’t accept public deposits, Non Governmental Organizations (NGOs), Micro Finance Institutions (MFIs) and other similar institutions can work as business correspondents and so fund the rural community. But the whole process needs to occur under banks’ supervision.
H R Khan, executive director, RBI said, “We are working on a fresh set of guidelines for the business correspondent model that would help in greater financial inclusion. At present, the model is too restrictive and we are constantly examining the correspondent model to make it more operative.”
In the same vein, Punjab National Bank in association with RBI has introduced a biometric ATM in Ranikhera village. The biometric amenity will allow user identification by using a thumb impression or stamp of the palm.
Other banks such as Syndicate Bank, State Bank of India, Oriental Bank of Commerce are also looking to start such ATMs.
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