Business correspondent services for financial inclusion
                     How do business correspondent services helping 
in financial inclusion in India?
What is a business correspondent service?
• A business correspondent (BC) is an agent who represents a financial institution and 
provides banking services to customers on its behalf. BCs are often located in remote 
and rural areas, where access to formal financial institutions is limited.
• BCs offer a range of services, including cash deposit and withdrawal, loan disbursement 
and repayment, bill payments, and insurance premium collection.
• In India, BC services are provided by a range of institutions, including banks, 
microfinance institutions, and non-governmental organizations and fintech solutions 
companies. The Reserve Bank of India (RBI) regulates BCs in India.
How do business correspondent services 
helping in financial inclusion in India?
• Financial inclusion is the process of providing financial services to those who are 
excluded from the formal financial sector. In India, business correspondent (BC) services 
have played a key role in furthering financial inclusion.
• BCs are intermediaries who provide last-mile connectivity between financial service 
providers and their customers, often in remote and rural areas.
• BC services have helped to increase access to formal financial services for millions of 
people in India who would otherwise be excluded. BCs have also helped to improve 
financial literacy and awareness, and to build trust in formal financial institutions.
• BC services have played a particularly important role in helping women to access 
financial services. Women are often excluded from the formal financial sector due to 
cultural barriers and lack of financial literacy. BCs have helped to break down these 
barriers and provide women with access to essential financial services.
Challenges
Business correspondent services provide an essential link between financial institutions and 
customers in underserved communities. However, these services can be challenged by 
various factors
• A lack of awareness or understanding of the services offered, limited access to 
technology, and language barriers.
• In addition, business correspondent services may be less available in rural areas or in 
regions with poor infrastructure. As a result, customers in these areas may have 
difficulty accessing their accounts or completing transactions. 
• Business correspondent services can also be challenged by competition from other 
providers, such as mobile money providers or informal money lenders.