A positive step towards financial inclusion for an equitable society

Be it Jan Dhan Yojana, benefit schemes, payments or Covid-19 cash relief, the business correspondent (BC) industry has played a significant role in driving financial inclusion to the last mile. Interestingly, the BC industry has, over the years, come a long way in advancing financial inclusion in India. However, experts are of the view that there is a dire need to significantly expand scope of digital financial services and address key challenges to make the industry self-reliant, more efficient and effective. However, a lot more needs to be done to create a more impactful model. In keeping with this, the Grameen Foundation India (GFI) and the Business Correspondent Federation of India (BCFI) recently came up with a joint report on ‘Reimagining the Next Generation BC Model’. This has provided a dynamic platform for industry experts to come together and co-create a strategy to build this model during threadbare discussions. It also showed the path toward the next-generation BC model. Finance industry leaders have charted a more inclusive and viable future for the Business Correspondents (BCs) in India.

One should note that the experts’ recommendations include ideas on regulatory reforms, improved visibility of BCs, marketing strategies, increased gender sensitivity and making BCs one-stop points for financial services. It now requires capacity building of all stakeholders, making the BC industry more investor-friendly, creating an open common knowledge-sharing platform, transitioning from demand fulfillment to demand generation and providing training content in vernacular languages. The importance of collective action and partnership in achieving financial inclusion goals and creating a more equitable and sustainable financial system for all can hardly be over emphasised.

It should be understood that financial inclusion is critical for building an equitable society. Achieving this goal involves not only expanding access to financial services but also addressing the underlying structural issues that perpetuate financial exclusion. It requires a fundamental shift in the way the financial systems operate in the country. There is no doubt whatsoever that the BC industry needs to collaborate and create a more inclusive, responsible, and viable model that benefit BC agents and the communities. Gender equality in the BC industry is essential for sustainable economic growth and requires the active participation and collaboration of stakeholders across the industry. By increasing women's participation and leadership, one can improve access to financial services for underserved communities, promote more responsible and inclusive practices and create a more equitable and sustainable financial system for all.

There is no denying that BC-Sakhis are playing a critical role in providing financial solutions to the unbanked population in India. They are crucial in hand-holding and acquainting the masses to financial services while driving financial inclusion at the last mile. Therefore ample avenues of sustainable growth should be provided to such women, who, in turn, would contribute meaningfully in financially empowering the country.