Banks should ensure that business correspondents (BCs) be appointed after exercising due diligence regarding their antecedents and necessary training given to them, said Ms Uma Shankar, Regional Director, Reserve Bank of India.
Addressing the regional heads of banks and bankers operating in north Karnataka, State Government officials and NGOs, Ms Shankar said the banks should monitor activities of BCs by conducting frequent visits and analysing audit trail.
Banks should also work on setting up some form of low-cost brick and mortar branches i.e., intermediary branches, between the base branch and BC locations.
She complemented the SLBC for setting up of the Karnataka State Farmers’ Resource Centre (KSFRC) with active co-operation and participation of 10 banks and other stakeholders, which include the State Government.
Financial Literacy
Ms Shankar, later attending horticultural mela, organised by the Horticulture University, Bagalkot, told the audience on various initiatives taken by the RBI on financial inclusion front such as ‘Project financial literacy’ and release of comic book series such as ‘Raju and Money Kumar series’ to create awareness on financial literacy amongst the students and common people.
She also attended a workshop of SHG members and small entrepreneurs, organised by Karnataka Vikas Gramin Bank (KVG Bank).