In recent announcements, the government of India has unveiled ambitious financial inclusion plans of which the Business Correspondent (BC) model is a key piece. Over the next several weeks, Grameen Foundation India (a wholly-owned subsidiary of Grameen Foundation) will post a series of blogs that discuss this model and how to make it work for promoting financial inclusion in India.
Chandni Ohri, CEO, Grameen Foundation India
With the recent circular by the Reserve Bank of India (RBI), allowing non-banking financial companies (NBFCs) that do not accept deposits to be authorized as business correspondents (BC), there is no doubt that NBFC-MFIs1 stand to gain a lot. It would be prudent for such microfinance institutions (MFIs) to consider this opportunity seriously and explore a partnership with a reputed bank.