The traditional banking model has been dominated by physical branches, historically a significant barrier to inclusion for many people, particularly those living in remote and rural areas.

To ensure greater Financial Inclusion and increase the outreach of the BFSI sector, the banks started giving permits to some agents that will be present at various remote places and act as intermediaries in providing some Banking services through the use of the Business Correspondent Model (BC Model). The Business Correspondent is an extended arm of the Bank Branch that provides Financial and Banking services to customers in unbanked and underbanked areas.
In the BC model, banks partner with existing businesses such as shops, pharmacies, or gas stations to provide essential banking services to customers in their communities. It allows customers to access their bank accounts, make deposits and withdrawals, and pay bills without traveling long distances to a physical branch. The BC model also enables banks to reach customers needing more means or technical skills to access online banking services.

One of the most significant advantages of the BC model is its potential to drive financial inclusion by providing access to banking services to population groups that have traditionally been excluded, such as rural communities, low-income households, and women. In many developing countries, women and rural communities often have limited access to financial services due to various social, economic, and cultural barriers. By providing banking services through BCs, banks can help to close these gaps and bring more people into the financial system.

Another advantage of the BC model is its potential to reduce the cost of banks. Physical branches are costly, and the BC model allows banks to reduce the overhead of maintaining and staffing branches while still providing essential banking services to their customers. It also helps banks to increase profitability.

Finally, the BC model could reduce the environmental impact of banking services. Physical branches are energy-intensive to operate, and reducing the number of branches can significantly reduce greenhouse gas emissions. By partnering with existing businesses, banks can reduce their carbon footprint while still providing essential banking services to their customers.

While there are many benefits to the BC model, there are also some challenges to consider. One of these is the need for adequate training and support for the BCs, who will be responsible for providing banking services to customers. Banks must ensure that BCs are appropriately trained on security and compliance protocols, as well as on customer service and communication skills. It is essential in the context of expanding financial inclusion, as BCS must be able to provide accurate and appropriate information to customers who may