BCs seek meeting with finance ministry to break deadlock over remuneration

Industry representatives for business correspondents point out that there is pressure from banks to raise deposits, despite the fact that the BC channel has already overtaken branches in doing so

Business correspondents (BCs) have sought a meeting with the Ministry of Finance (MoF) to break the deadlock over the remuneration paid to them. particularly in light of pressure from banks to raise deposits.

 

“We are being seen as extension counters of banks. The remuneration paid to us has to be revised for the BC channel to be viable," an industry source said, on condition of anonymity because negotiations are still ongoing.

 

The credit-deposit (CD) ratio of banks - the percentage given as loan(s) for every Rs 100 in deposits – had reached as much as 90 per cent during calendar