Muthoot Finance to act as Business Correspondent of YES Bank

In June last year, RBI changed guidelines allowing banks to appoint non deposit taking NBFCs as their BCs

Gold loan Non Banking Financial Company (NBFC), Muthoot Finance will now act as business correspondents for private sector lender Yes Bank.

Earlier banks were not allowed to appoint NBFCs to act as their BCs but in June last year, Reserve Bank of India changed the guidelines allowing banks to appoint non deposit taking NBFCs as their BCs.

Muthoot Finance believes that with this tie-up they would be able to offer Domestic Remittance service to the migrant population in cities.

The money can now be collected from Muthoot Finance branches in cash or get it transferred to their bank accounts or even be collected through ATMs.

On the other hand YES Bank believes that it will help them further the cause of digital financial inclusion.