Business Correspondents Demand Commission Hike to Boost Financial Inclusion

The Business Correspondent Resource Council (BCRC) is pushing for higher commissions for banking agents to enhance financial inclusion. Despite their crucial role, agent commissions have stagnated, impacting their operations. BCRC is also advocating for penalty reforms and has submitted grievances to the Finance Ministry for consideration.

The Business Correspondent Resource Council (BCRC) is advocating for an increase in the commissions offered to agents as part of efforts to drive financial inclusion in India. The council is requesting a 30 basis point hike as current rates have remained stagnant despite rising operational costs.

Introduced by the Reserve Bank of India in 2006, the Business Correspondent model aims to broaden financial access through a network of rural touchpoints. These agents provide essential banking services beyond traditional bank branches, significantly contributing to key government schemes.

As the industry seeks reforms, including penalty reassessment, BCRC's efforts highlight the ongoing challenges in maintaining equitable compensation for agents amid growing expectations in the banking sector.

(With inputs from agencies.)