The Business Correspondent Resource Council (BCRC) has appealed to the Parliamentary Committee on Finance for a review of Bank Mitras’ remuneration and infrastructure support.
What is the Bank Mitra Program?
- A key component under the Financial Inclusion
- Introduced to bridge the gap between traditional banking and rural/underserved areas.
- Bank Mitras act as business correspondents (BCs) of banks in remote locations.
Objectives of the Bank Mitra Program
- Extend banking services to unbanked and underbanked regions.
- Simplify account opening for rural populations.
- Promote financial literacy by educating individuals on banking products and digital transactions.
- Support Direct Benefit Transfers (DBT) and reduce middlemen.
Benefits of the Bank Mitra Program
- Access to banking services in remote and rural areas.
- Local employment generation and promotion of entrepreneurship.
- Cost-effective model using existing tech; avoids need for new physical bank branches.
- Encourages savings and formal banking habits.
- Promotes digital empowerment through AEPS (Aadhaar Enabled Payment System) and cashless transactions.
Impact of the Program
- Increased bank account penetration in rural areas.
- Facilitated efficient delivery of DBTs, subsidies, pensions, etc., with reduced leakages.
- Reduced financial frauds by offering safe, accountable alternatives to informal lenders.
- Contributed to the Digital India and inclusive growth
The Bank Mitra program is a transformative step in democratizing banking access. It combines technology, local manpower, and financial education to promote an inclusive financial ecosystem. A key enabler in India’s march toward universal financial inclusion and a cashless economy.
