Kochi-based Muthoot Finance Ltd (MFL) Monday said it has entered into a NBFC service agreement with India's fourth largest private bank, Yes Bank, to act as the ban's business correspondent.
A business correspondent is a representative who offers services to the public on behalf of the bank.
Earlier banks were not allowed to appoint a non-banking financial company (NBFC) to act as their business correspondent; however the RBI through its circular in June last year permitted banks to appoint Non-deposit taking NBFCs as their business correspondents.
"Through this arrangement Muthoot Finance has leaped another step forward towards achieving its goal of taking financial services to the door steps of every citizen in the country, which ultimately is the aim of Financial Inclusion as well," the company's managing director George Alexander Muthoot said.
According to Muthoot, partnering Yes Bank will further strengthen and add value to his company.
-- Indo-Asian News Service
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