Page 56 - Banking Finance July 2025

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several challenges, including low commissions, high costs and the income for banks is Rs. 5,250 crore. "The average
inconsistent transaction volumes (especially after UPI-based transaction cost at a BC point is Rs. 37; at an ATM it is Rs.
transactions picked up), difficulties in float management, and 60; and at a branch it is Rs. 80-120... So, some of the savings
reconciliation delays. can be passed on to BCs," she said.

Tripathy estimated that, on an average, 15 per cent of BC She opined that banks should offer some form of subsidy, to
agents earn less than Rs. 3,000 per month as commission; ensure a fixed income for the bottom 20 per cent of BC
30 per cent get Rs. 3,000-5,000; 35 per cent get Rs. 5,000- points, which cater to villages with less than 500 residents
10,000; and the rest get above Rs. 10,000. each.

Pointing out that BC commissions have not been revised since
He noted that CSPs/ bank mitras in the North-East, leftwing
extremism-affected districts, desert areas, hilly states, and 2014, despite increased service costs, inflation, and higher
other difficult centres suffer the most due to a low operational risks (including constant upgrades and changes
commission structure and reduced potential. in technology), BCRC's Tripathy called for establishing a
remuneration review committee comprising the Department
of Financial Services, RBI, NPCI, industry bodies, and banks.
Seema Prem, co-founder and CEO of corporate BC FIA
Global, said: "Since we've come into the (BC) business (in
The commission structure could be linked to the Consumer
2012), there has been zero hike in the commission banks
Price Index (CPI) and a transparent and scalable formula
pay us... the commissions have not kept pace with inflation.
could be arrived at for periodic commission adjustments
So, our channel is actually bleeding."
across services and geographies.
Significant Savings Given that financial inclusion is one of the priorities of the
Prem underscored that last year, Rs. 1,50,000 crore worth government, BC industry players fervently hope it will step
of lowcost deposits flowed into the banking system through in to do a good turn to BCs, who toil to provide last-mile
this channel. Assuming a net interest margin of 3.5 per cent, banking services in the hinterland. (Source: BusinessLine)

Canara Bank Gold Theft: Branch Manager Among Three Arrested
for Stealing 58 kg Gold

In a major bank heist, 58 kg of gold worth over Rs. 40 crore was stolen from the Canara Bank branch in Managuli,
located in Karnataka’s Vijayapura district. The police have arrested three individuals, including the branch manager,
in connection with the theft, which involved tampering with the bank’s locker security systems.
The stolen gold was part of the collateral pledged by customers against loans. Preliminary investigations reveal that
the accused meticulously planned the heist and attempted to erase evidence by disabling CCTV systems. Authorities
acted swiftly following complaints from the bank and traced the suspects based on internal records and movement
logs.

The incident has raised serious concerns over internal security lapses and trust violations within the banking system.
Senior Canara Bank officials and law enforcement agencies are jointly reviewing procedural gaps to prevent future
breaches. Efforts are underway to recover the remaining stolen assets, with further arrests likely.

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