Usage of BC network

To further the agenda of Financial Inclusion in India, Reserve Bank of India in Jan 2006 had come out with a new set of guidelines allowing banks to employ two categories of intermediaries viz: Business Correspondents (BC) and Business Facilitators (BF) to expand their outreach in rural areas. While the BCs were permitted to carry out transactions on behalf of the bank as agents, the BFs could refer clients, pursue the client's proposal and facilitate the bank to carry out its transactions. The client ownership always remained with the Bank. The original guidelines have gone through revisions starting with April, 2008 though, the basic regulatory framework has more or less remained the same over the years.

KBS adopted the BC model since 2008 and possibly was the first bank to make a success of the model, a fact that was acknowledged at various forums including the College of Agri Banking (CAB), an RBI institution, who in their quarterly journal CAB Calling issue of April - June 2009 had acknowledged the success story. The Bank, ab initio adopted the BCs as integral to its coverage policy and introduced a cost plus pricing model. By end Mach 2020, the BCs contribute about 19% of customer deposits business.

Currently bank extending the Banking Services through a network of 14 BC outlets through M/s Gram Tarang Inclusive Development Services Pvt. Ltd(GTIDS).

Services offered at BC Outlets.

  • Deposits
  • Advances
  • Remittances.