New Delhi [ India ], April 6 (ANI): India The business correspondent (BC) segment of the company is projected to surpass ₹147 billion by the fiscal year 2025, demonstrating a remarkable 19 percent compounded annual growth rate (CAGR), according to a report released by BLS E-Services.
According to the report from the digital services company, growth is fueled by the extension of the Pradhan Mantri Jan Dhan Yojana (PMJDY), greater adoption of Basic Savings Bank Deposit Accounts (BSBDAs), and rising support for Direct Benefit Transfer (DBT) programs that distribute subsidies and social benefits directly into recipients' accounts.
Bank Business Correspondents are appointed agents who provide crucial financial services in underprivileged and distant regions.
Operating under a commission-driven structure, BCs act as an extension of traditional banking entities, facilitating the final leg of service distribution. financial services They receive either a set fee or a share of the transaction amount, based on the specific service offered.
The report indicates that the sector expanded from Rs 47 billion in fiscal year 2018 to Rs 102 billion in fiscal year 2023.
The report further stated that as rural families embrace formal financial services , transaction volumes have surged, especially in regions where physical bank branches are still sparse.
Boasting more than 1.35 million BC agents active worldwide, India According to the PMJDY report, these financial intermediaries are helping millions of individuals—particularly those in rural areas—to gain access financial services From cash deposits, withdrawals, and money transfers to paying bills, using Aadhaar-linked services, and offering microfinance loans, Business Correspondents have emerged as crucial intermediaries connecting traditional banks with underbanked communities,” stated Shikhar Aggarwal, Chairman of BLS E-Services.
The document went on to state that the increase in Basic Savings Bank Deposit Accounts under PMJDY has also played a crucial role in boosting the sector's growth.
According to the report, the figure is projected to surpass 550 million by FY2025, up from 380 million accounts in 2020.
Many of these accounts belong to people living in rural areas, with most transactions—like disbursements under Direct Benefit Transfer (DBT), cash withdrawals, and money transfers—being carried out via Business Correspondents (BCs) utilizing Aadhaar for verification.
As stated by Lokanath Panda, COO of BLS E-Services, "The Business Correspondent (BC) sector is anticipated to expand with an annual growth rate of 19% from fiscal year 2022 through 2025, increasing revenues from INR 102.9 billion to INR 147.4 billion. Major factors fueling this expansion consist of the widening reach into rural areas by BCs, the rise in BSBDA accounts and savings, higher transaction numbers, along with greater acceptance of governmental direct benefit transfer programs."
The report noted that the technological integration has further reinforced the BC model.
Services like UPI, Aadhaar-enabled Payment Systems (AePS), RuPay, and IMPS, together with mobile banking apps, have enhanced security and accessibility for financial transactions, reaching even the farthest regions of the nation.
Based on NPCI statistics, more than 520 million AePS transactions are handled each month, largely due to the significant contribution of Business Correspondents. (ANI)