The number of bank mitras, the field force to ensure last-mile financial connectivity, has now reached 8.50 lakh, making a significant positive impact on financial inclusion.

Last financial year witnessed the addition of almost one lakh bank mitras, who are employed as field agents by the business correspondents (BCs) to render last-mile financial services, taking the total number to 8.50 lakh, as per Finance Ministry data. 

“These are like a silent army delivering branchless banking across the country. The Covid-19 pandemic proved the efficacy of the Bank Mitra model, and they rendered notable service,’‘ a senior official of the Indian Banks Association (IBA) told businessline.

Increased penetration

The increased penetration is due to diverse factors. According to Bibekananda Panda, Senior Economist, State Bank of India, given the penetration of digital banking in the country, banks are strategically deploying more bank mitras to deliver superior customer service at a lesser cost.

“For public sector banks, it serves the twin objective of lowering footfall at rural and semi-urban (RUSU) branches while simultaneously offering quality service to all customers,” Panda said. 

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There has been an increase in the service offerings of bank mitras in recent years. “For a vast geography like ours, this is the best way to connect everyone to the formal financial network, as bank mitras provide nearly all services, from cash deposit and withdrawal to loan proposal sourcing and selling other value-added services like mutual funds and insurance, among others,’‘ he added.

It’s a win-win situation for everyone since banks are able to serve the last mile at a lower cost. To optimise the system, banks have board-approved SOPs for onboarding bank mitras, and applicants go through a stringent due diligence process to ensure that the system’s security is not jeopardised.

The success of the Pradhan Mantri Jan Dhan Yojana (PMJDY), which now covers over 49 crore beneficiaries, is also one of the contributions of the bank mitras, say bankers.

Challenge

Despite their contribution, the bank mitras, however, are facing many challenges. “For long, we have been requesting an increase in the fixed pay component as well as commission on transactions,” said M Raju, a bank mitra in Bhupalapatnam village in Karimnagar District of Telangana, said. 

“We get only ₹1,250 as fixed pay and about ₹80-100 per transaction of ₹1 lakh,’‘ he added. 

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