PROS AND CONS

  • Though the BC model was attractive it has not delivered effectively because of the many shortcomings associated with it.
  • Firstly, banks have imposed higher restrictions on operations of BCs.
  • Secondly, salaries of BCs were very low compared to the physical work they have to do to cover the distant areas.
  • Still It is a good option for many people.

WHO CAN ACT AS BCs?

  • Initially the entities permitted to act as BCs included registered entities like NGOs/ MF1s.
  • Later, the list expanded to include individuals like
  • Retired bank employees. retired teachers. retired government employees and ex-servicemen. individual owners of kirana / medical /Fair Price shops. individual Public Call Office (PCO) operators. agents of Small Savings schemes of Government of India/Insurance Companies. individuals who own Petrol Pumps. authorized functionaries of well-run Self Help Groups (SHGs) which are linked to banks. Any other individual including those operating Common Service Centres (CSCs) are also allowed to act as BCs of banks

BANK MITRA-INFRASTRUCTURAL REQUIREMENTS

To become a CSP or Bank Mitra to any bank you must have following things readily available.

  • Computer (Desktop or Laptop)
  • Internet connectivity (Broadband.Modem or Dangle)
  • Printer (Along with Scanner)
  • Minimum 100 SOFT office space

COMMISSION

  1. BANKS PAY COMMISSION: As a Bank Mitra you earn some Fria, 1 commission on accounts opening, cash deposit, cash withdrawal, Credit Card payments, Bill Payments.
  2. BASIC FIX PAY: Most important a basic fix pay of minimum Rs. 3000 per month is being paid to Bank Mitra on certain conditions. Currently many VLEs are earning more than Rs.20, 000/- per month.

BANK MITRAS OFFER LIMITED BANKING SERVICES

  • Banking services like. Account opening, cash deposit acceptance and cash withdrawal etc.(Unto Rs.10.000)
  • Identification of borrowers
  • Attend to collection of small value deposit
  • Disbursal of small value credit (Micro Credit)
  • Recovery of principal /collection of interest sale of micro insurance / mutual fund products/ pension products/ other third party products and receipt and delivery of small value .
  • remittances/ other payment instruments.
  • Creating awareness about saving and other products education and advise on managing money and debit counselling etc.(Financial Literacy)