Sunday, 27 October 2019

BC / BF - 1 , Banking Fundamentals to Know for Students.

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Benefits of using BCS 

Some of the advantages of using BCs as listed below: 
A better alternative for bank branches: Generally, a rural bank branch can serve
 5,000 to 10,000 families in 15 to 20 villages within a radius of 15kms. A Public 
Sector Bank branch may require more than 5  years to serve unbanked areas in
 India, while a private sector &  foreign bank with IT connectivity may require about
 5 times more time. Further, obtaining permission to open a branch is a 
long and protracted process. The BC option potentially enables banks
to reach out much faster and at a much lower cost. 
Reaching the unreached: The model enables banks to extend financial services to the unreached clients beyond their branch network as beneficiaries of the BCs are
mostly located in unbanked and underbanked areas
Better loan performance: Since local stakeholders like NGOs, post 
offices, etc., are involved in the process, they know the customers 
at a personal level. The personal connection enhances the customers' 
 accountability to the BC, which in turn improves loan performance and repayment rates. 
Doorstep banking: Disbursement and loan recovery at the doorsteps of the beneficiary. 
Quick expansion: Scaling up of this model is possible within a 
short span of time. 

Who is Eligible for BC?

1.    NGOs/ MFIs set up under Indian Societies/ Trust Acts. (Care: excluding NBFC)
2.    Societies registered under mutually aided co-op. societies (MACs) Act or the 
Coop. Acts of States.
3.    Section 25 companies.
4.    Post Offices.
5.    Retired Bank employees
6.    Ex-Servicemen.
7.    Retired Govt. Employees.
8.    Individual Kirana/ medical/fair price shop owners.
9.    Individual Public Call Office (PCO) operators.
10.  Agents of small savings schemes of the Government of India/ Insurance Companies.
11.  Individual who own petrol pumps.
12.  Retired teachers.
13.  Authorized functionaries of well-run Self Help Groups (SHGs) linked to banks.
14.  Individual member of Farmer's Clubs.
15.  Individual operators of Rural Multipurpose kiosks/ Village Knowledge Centres
16.  Individuals/ proprietors/ owners who manage Agri Clinics/ Agri Business Centres.
17.  Retired Post Masters.
18.  Individuals such as auto dealers, tractor dealers and FMCG stockiest.
19.  Insurance agents including of private insurance companies (IRDA certified) and 
postal agents.
20.  Individuals operating Common Services Centres (CSCs) established by 
Service Centre Agencies (SCAs) under the National e-Governance Plan (NeGP).
21.  For-profit companies
22.  Any other individual considered suitable by the selection committee.

Who is Eligible for Business Facilitator (BFs) 

Under the "Business Facilitator" model, banks may use the services of intermediaries
 such as:
1.    NGOs/SHGs
2.    Farmers Clubs
3.    Cooperatives
4.    Community-based organizations
5.    IT-enabled rural outlets of corporate entities
6.    Post Offices
7.    Insurance agents
8.    Well functioning Panchayats
9.    Village Knowledge Centres
10.  Agri Clinics
11.  Agri Business Centers
12.  Krishi Vigyan Kendras
13.  KVIC/KVIB units

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