Jan Dhan transactions spur 4-fold surge in demand for banking correspondent

However, despite the surge, the average income of banking correspondents has taken a beating due to the low value of transactions

Demand for banking correspondents has surged nearly 4x in rural areas, in the last three months. The spike in transactions among Jan Dhan accounts has driven the same. However, the surge notwithstanding, the average income of banking correspondents has taken a beating, owing to the low value of transactions.

To tide over the economic crisis, the government in March announced an ex-gratia payment of Rs 500 to women Jan Dhan account holders for three months, starting April. This led to a sudden surge in activity — mostly withdrawals — as well as reactivation of inactive accounts.

The number of transactions in rural