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State Bank of India (SBI) is strengthening its low-cost model to compete with the upcoming payment banks.
According to Arundhati Bhattacharya, Chairman and Managing Director, SBI, the bank is looking to do this through the business correspondent (BC) model, who would operate through point of sales machines.
"The low-cost model we are talking about involves mostly the business correspondents," she said on the sidelines of the FICCI Banking Conclave here in the city.
Bhattacharya's comments come on the back of a question relating to threats posed to "universal" banks from the upcoming payment banks.
RBI has recently granted 11 in-principle licence for payment banks.
SBI already has put in place 56,000 business correspondents in the country, and 500 more are to be introduced in West Bengal soon.
These business correspondents will be armed with portable machines that are equipped with scanners and printers for on spot transactions.
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