In recent years, other than conventional banks, certain other categories of banks have come into existence like Payments Banks
and Small Finance Banks. Key objective of setting up of both types of banks is to promote greater financial inclusion through a secured, technology driven environment.
Payments Banks:
- Can accept demand deposits from public up to Rs. 1 lakh per customer but cannot accept recurring/fixed deposits.
- Can issue ATM/Debit Cards but not Credit Cards.
- Cannot give any loans and advances.
They can also offer payments and remittance services through various channels and distribute mutual funds and insurance products.
Small Finance Banks:
Small Finance Banks provide savings vehicle primarily to unserved and underserved sections of the population and extend small ticket loans (up to Rs.25 Lakhs) to small business units, micro and small enterprises, small and marginal farmers, entities in the unorganized sectors, through high technology low-cost operations.
Business Correspondents (BCs):
A BC is a representative (or an agent) of a bank who goes to customers (usually in remote locations/villages) to help them with their banking needs /transactions.
A BC can provide you with the following services:
- Open a bank account.
- Deposit & withdraw money.
- Transfer money into & from your account.
- Collection of loan applications.
- Disbursal of small value credit.
NOTE:
You can
- Approach the nearest bank branch to know about availability of a BC in your locality.
- Confirm the name and details of the BC from your bank, in case of any doubt.
- You can also access https://www.iba.org.in/bcregistry/ to find a BC near you.
- Lodge a complaint with your bank if you are not satisfied with the services of a BC.
Disclaimer : This message is presented as a reading and teaching material with a sincere purpose of making the reader financially literate. It is not intended to influence the reader in making a decision in relation to any particular financial products or services.
Printed by Reserve Bank of India, Financial Inclusion & Development Department.
