• Home
  • Terms and Conditions
  • Privacy Policy
  • Copyrights & DMCA
  • Cookie Policy
  • Contact Us
Sunday, January 29, 2023
Daw Rimiz
No Result
View All Result
  • Login
  • Home
  • Business
    • Technology
    • Market
    • Gold
    • Stock
    • Money
    • Travel
  • Food
    • Dessert
    • Drinks
    • Fast food
    • Recipe
  • Health
    • Fitness
    • Diet
    • Exercise
    • Sports
  • Lifestyle
    • Fashion
    • Music
    • Kids
  • Services
    • Errand Services
    • Customer Service
    • Care Services
    • Cleaning Services
    • Online Services
    • Office Services
    • Home Services
    • Transport Service
    • Writing Service
  • Pages
    • Terms and Conditions
    • Privacy Policy
    • Digital Millennium Copyright Act Notice
    • Cookie Policy
  • Contact Us
  • Home
  • Business
    • Technology
    • Market
    • Gold
    • Stock
    • Money
    • Travel
  • Food
    • Dessert
    • Drinks
    • Fast food
    • Recipe
  • Health
    • Fitness
    • Diet
    • Exercise
    • Sports
  • Lifestyle
    • Fashion
    • Music
    • Kids
  • Services
    • Errand Services
    • Customer Service
    • Care Services
    • Cleaning Services
    • Online Services
    • Office Services
    • Home Services
    • Transport Service
    • Writing Service
  • Pages
    • Terms and Conditions
    • Privacy Policy
    • Digital Millennium Copyright Act Notice
    • Cookie Policy
  • Contact Us
No Result
View All Result
DawRimiz
No Result
View All Result
Home Business

Business correspondents’ income model based on commissions unviable

Donna Gilbert by Donna Gilbert
September 7, 2022
in Business
0
Business correspondents’ income model based on commissions unviable

Rural business correspondents have to bear the risk and equipment costs which squeeze their margins

Business correspondents’ income model based on commissions unviable 1

Article Summary show
READ ALSO
Intz Stock: What Is It
What is Meant by Pure Endowment?

READ ALSO

Intz Stock: What Is It

What is Meant by Pure Endowment?

MUMBAI: Business correspondents (BCs), who function as last mile access points for banks’ customers in underbanked areas, are losing out on their income due to “unviable” income-model based on commissions, the industry representative body has claimed.

Business Correspondent Federation of India (BCFI) told ET that while the government and regulators have shown intent in developing guidelines for BCs to thrive and further the Centre’s broader aim of financial inclusion, glitches and miscommunication between various stakeholders have caused the model to become unviable.

Almost 10 lakh BCs function in both rural and urban underbanked areas where banks don’t have branches, providing customers basic banking services such as savings account opening and remittance transfer. “BCs work on a commission-based model, where they are either paid 0.5% of the transaction amount or Rs 15, whichever is lower, by the bank on Direct Benefit Transfers. This was done to equate the BC charges with fees charged by banks on ATM withdrawals,” said a senior official from BCFI. “But BCs who work in rural areas have to bear the risk and equipment maintenance costs themselves, which squeezes their already wafer-thin margins.”

The government, while the guidelines were being drafted, had shown intent to either fix a monthly income for BCs or set the commission at 3.15% of the transaction fee, “but that has not happened,” the source said. In March, a five-member team from BCFI had met Nandan Nilekani-led RBI’s Committee for Deepening Digital Payments (CDDP) and highlighted various concerns faced by the industry. ET had reported that the body had asked for a separate independent regulator with experts from the sector to strengthen the existing framework along with the RBI.

“We had an encouraging meeting with the six-member CDDP at the RBI headquarters on March 8, 2019. They were receptive to the points we had put forward. We hope they will take cognizance of the issues we raised and factor it in their final report,” a person from BCFI said.

RBI’s CDDP was formed earlier this year to undertake a comprehensive study of the payments industry and publish a recommendation report to deepen the existing regulatory framework. The regulators had said in a circular dated January 8, 2019, that the committee will meet stakeholders and industry bodies and publish their report “90 days from the first meeting.”

COMMISSION BASED
BCs work on a commission-based model, where they are either paid 0.5% of the transaction amount or Rs 15, whichever is lower.Business correspondents’ income model based on commissions unviableBusiness correspondents’ income model based on commissions unviable

Related Posts

Intz Stock: What Is It
Stock

Intz Stock: What Is It

January 28, 2023
What is Meant by Pure Endowment?
Money

What is Meant by Pure Endowment?

January 23, 2023
South Korean Culture Business – Why You Should Start One
Business

South Korean Culture Business – Why You Should Start One

January 23, 2023
Can You Make Money From Day Trading?
Money

Can You Make Money From Day Trading?

January 7, 2023
The Pros and Cons of Availing a Commercial Business Loan
Business

The Pros and Cons of Availing a Commercial Business Loan

January 4, 2023
Your Car Insurance Claim May Get Rejected. Here’s Why & How to Avoid It
Money

Your Car Insurance Claim May Get Rejected. Here’s Why & How to Avoid It

January 3, 2023
Next Post
Major resignations at Vedanta Cairn; CEO, CFO quit last week

Major resignations at Vedanta Cairn; CEO, CFO quit last week

No Result
View All Result

Categories

  • Business
  • Care Services
  • Cleaning Services
  • Customer Service
  • Dessert
  • Diet
  • Drinks
  • Errand Services
  • Exercise
  • Fashion
  • Fast food
  • Fitness
  • Food
  • Gold
  • Health
  • Home Services
  • Kids
  • Lifestyle
  • Market
  • Money
  • Music
  • Office Services
  • Online Services
  • Recipe
  • Services
  • Sports
  • Stock
  • Technology
  • Transport Service
  • Travel
  • Writing Service

Recent Posts

  • Intz Stock: What Is It
  • What is Meant by Pure Endowment?
  • South Korean Culture Business – Why You Should Start One
  • Live Cricket Streaming on Ten Sports
  • Technology in the Age of AI
  • Home
  • Terms and Conditions
  • Privacy Policy
  • Copyrights & DMCA
  • Cookie Policy
  • Contact Us

© 2021-2023 Dawrimiz All Rights Reserved Dawrimiz.

No Result
View All Result
  • Home
  • Business
    • Technology
    • Market
    • Gold
    • Stock
    • Money
    • Travel
  • Food
    • Dessert
    • Drinks
    • Fast food
    • Recipe
  • Health
    • Fitness
    • Diet
    • Exercise
    • Sports
  • Lifestyle
    • Fashion
    • Music
    • Kids
  • Services
    • Errand Services
    • Customer Service
    • Care Services
    • Cleaning Services
    • Online Services
    • Office Services
    • Home Services
    • Transport Service
    • Writing Service
  • Pages
    • Terms and Conditions
    • Privacy Policy
    • Digital Millennium Copyright Act Notice
    • Cookie Policy
  • Contact Us

© 2021-2023 Dawrimiz All Rights Reserved Dawrimiz.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In