*Products and Services offered by Equitas are subject to change from time to time. Offering of a product to specific customer is subject to the customer complying with necessary guidelines prevailing at that point in time.
Outreach Banking and Business Correspondents
Outreach Banking and Business Correspondents
In accordance with the Government of India’s vision to enhance financial inclusion and provide last mile delivery of banking services in a viable manner for both the bank and the last-mile households, Equitas Small Finance Bank Ltd. (ESFB) has deployed Business Correspondent (BC) model of banking. The BC’s are managed by the Outreach Banking unit of ESFB. ESFB BC’s provide plethora of financial services and help in enhancing financial literacy in their respective catchments. BC’s help us increase ESFB’s footprint by providing banking services at the last mile to the local population. BC’s leverage their local goodwill and knowledge to provide an avenue to access formal sources of credit and financial services to the unserved and underserved segment. Read more...
We consider our BC’s as partners who provide us with valuable insights and understandings of the local market and help us serve our target population. By providing our platform and by using technology as an enabler, our BC partners help us deliver most of the services that are offered at a typical bank branch from the BC establishment itself. With this, we promote entrepreneurship and help conclude a large volume of low-value transactions in a viable manner. The revenue generated is shared in a transparent and mutually agreed manner between ESFB and the BC’s.
Each of our BC points is linked to a base branch and perform various banking activities like account opening, cash deposit, cash withdrawal for customers. BC’s also sell products like Fixed Deposits and RD’s to promote thrift in the underserved segment. It is mandatory that our BC’s work exclusively with Equitas Bank and not with any other banks/financial institution.
BC’s are not expected to take any favour in cash or kind from the customers and will be compensated by ESFB on the basis of transactions they complete for the customers. We have a completely variable model of remunerating the BC’s where the commissions earned by them will be proportional to the banking services and activities, he/she performs and the loans he/she sources. To clarify, the more banking transactions a BC helps conclude through ESFB, the more that individual BC would earn. The BC’s are expected to always perform activities in the best interest of the customer and in no way manipulate things for his/her self-interest. As per regulatory guidelines, each BC is expected to work for at least 4 hours a day and for 5 days a week. He/she can very well work for longer hours and serve his customers effectively. Each of our BC will be supported by a BC manager.
The marketing expenditures are borne by us and the only investment that the BC is expected to make is upkeep of their premises. For third-party products like insurance and mutual funds, the compensation will be shared between the bank and the BC. The product & service specific commercials will vary from time to time depending on both regulatory and bank policies and guidelines. The sharing ratio will be published to the BC’s up on appointment.
The following categories of well-respected and ethical individuals/ entities can join us in our journey to provide banking services to the last mile of the population and become self-sustainable entrepreneurs.
|Business Correspondent Model (Eligible individuals and Entities)|
|Retired Government and PSU Servants||NGOs set up under the Indian Societies / Trusts Acts|
|Ex-service men||Cooperative Societies registered under Mutually Aided Cooperative Societies (MACS) Act or the Cooperative Societies|
|Individual owners of Kirana / Medical / Fair||Acts of States/Multi State Cooperative Societies Act.|
|Price shops / Hardware / Stationery||Section 25 Companies.|
|Small Savings Schemes agents||Companies registered under the Indian Companies Act, 1956 with large and widespread retail outlets, excluding NBFCs.|
|Individual Petrol Pump owners||Post Offices|
|Well run SHGs||Primary Agricultural Cooperative Society (PACS)|
|Individuals operating Common Service Centres||Customer Service Centres (CSCs)|
|Insurance Agents||Authorised Functionaries of well run Self-Help Groups (SHGs) linked to Banks.|
|Professionals like Videographers / Astrologers / CAs||Non-Deposit taking Non-Banking Finance Companies (NBFCs)*|
|Browsing Centres & Small Eateries|
|Any business person running one or more of the above|
For finding out more on the Business correspondents model of banking, do check the following links