Page 42 - Banking Finance June 2022

ARTICLE

6. Settlement of transactions on real time basis improves 3. Strong monitoring will help in reduction of inactive BCs;
liquidity at BC. thereby increase in FI transactions ultimately leads to
higher income.
7. Negotiating with corporate BC for nurturing, training,
monitoring of BCs on continuous basis. 4. Location specific tie ups with different banks will help
to scale up their business.
8. Investment in R&D by banks, for better outreach. Like
innovation of banking apps in local languages, provision for
increasing service range through bio metric authentication For individual BCs:
at BC locations Ex. life certificate service, etc. 1. He/she must be honest in discharging his duties.
9. Employee mind set should be changed from a burden 2. Working during demand hours like early mornings,
view point to opportunity view point by conducting evenings etc., if customers are farmers
workshops, trainings by duly explaining statistical figures
3. Maintenance of proper dress code, providing door step
in terms of gains in the journey of financial inclusion. 'If
services for Senior citizens, maintaining good ambience
we don't somebody else will serve and earn'' principle
in the BC location, keeping required stationery ready
shall be inculcated among staff.
on daily basis, visiting and depositing excess money
regularly in bank are some of the important strategies
For Bank branches: at BC level.
1. Owning of BC locations by branches from day 1 of their
establishment For Government:
2. Regular visits of branch manager / staff to BC location Being an aggregator, government can utilize DBT for more
not only help to monitor but also to bring confidence in number of services so that customer base at BC point can
the public. be increased. Short advertisements in mass media for the
BC model can improve confidence among public.
3. Timely attendance to grievances of BC like, failure of
transactions, etc.,
Conclusion:
4. Inculcate honesty during frequent interactions
BC is a cost effective model, can be implemented in lieu of
5. Timely support by providing small loans for procurement
regular branches by the banks to implement FI plan. BCs can
of POS machines & for creation of good ambience at
be used to penetrate banking services both horizontally and
BC location etc.,
vertically in the unbanked/under banked areas. BCs further
6. Educating BCs with regard to financial literacy, product
can be utilised for generating leads, conducting due
knowledge etc., by conducting frequent meetings with
diligence, recovery of loans etc. by offering a little extra
all BCs in branch location. Competitive environment may
amount along with their regular activities. A bank can tap
be created among different BCs by giving targets in
the untapped opportunities by investing in R&D by
account opening, social security scheme mobilization,
developing suitable micro products in deposits as well as
recovery of bank dues, RD account openings, turn over
advances which suits for small customers.
etc., will lead to improvement in overall efficiency of BC.
A bank which can focus on nurturing & Training BCs & Bank
For Corporate BC:
staff will be always a head in employee involvement.
1. Being a business entity it always looks for higher
Monitoring is king among all factors, hence proper structures
margins. But these margins not at the cost of service.
at all levels to monitor BCs to be established. Branches to
2. Identification of suitable technology partner, own BC points & should try for high turnover at BC locations.
establishment of strong network of individual BCs, Finally for effective financial inclusion every stake holder
formation of control structures to monitor and address should work with integrity and honesty to have a better
issues of BCs at different levels are the key issues with financially included society tomorrow. Financial Inclusion is
corporate BC. not a service, it is a responsibility!

42 | 2022 | JUNE | BANKING FINANCE