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The Centre may in the coming days allow banking correspondents (BC) to undertake sale of customised third-party products on insurance and mutual funds as part of efforts to augment their incomes and improve the sustainability of the BC channel.
On the drawing board are also plans to allow the BCs to expand its offerings around retail asset products and undertake sourcing/generation of application for several such products.
Lead generation of asset products including home loans, auto loan, personal loan and mudra loans are expected to be allowed, sources close to the development said.
The government may also consider prescribing minimum compensation for different services to ensure economic viability of activity, they said. In order to build a sustainable ecosystem across the geographies, differential commission structure for rural/ semi urban and urban/metro centres may be worked out to ensure a level playing field.
To start with, Customer Service Points at urban/metro centres may be paid a differential Commission of 10 per cent on transaction-based incentives.
These recommendations have been submitted by a DFS appointed sub-committee headed by CS Setty, Managing Director of State Bank of India.
Meeting this week
DFS Secretary Vivek Joshi is expected to this week hold a review meeting with top bankers on the recommendations of this sub-committee, sources added.
The recommendations of the sub-committee should be music to the ears of lakhs of Bank Mitras (as BCs are commonly called) who are eagerly awaiting for measures to enhance their incomes and improve the viability of their activity.
The BC Channel, it maybe recalled, was conceptualised to bring populace at last mile into formal banking fold. Now the government is looking to expand their bouquet of services that could be offered by them and also see if minimum compensation could be prescribed.
There maybe also measures in the coming days to reform the commission sharing structure for the BCs to improve the viability of their operations.
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