Addressing three key issues of BC agents in India for COVID-like challenges
The network of business correspondents (BCs) has evolved into the backbone of financial inclusion in rural India. However, it continues to face challenges, which were further aggravated during the COVID-19 pandemic. This blog highlights three key issues that hinder the sustainability of the BC model.
Financial inclusion in India received a huge boost, thanks to the PMJDY program, Aadhaar, and the expansion of mobile connectivity throughout the country; but the real catalyst is the country’s digital benefits transfer program.
There exists an immense potential for G2P payments to further the cause of financial inclusion in India. This note analyses the impediments that affect the realisation of this potential from both demand and supply sides.