Summary:

The government of India has been instrumental in promoting UPI adoption through initiatives such as Digital India and Jan Dhan Yojana, aimed at enhancing financial literacy and awareness of digital payments. To address the last-mile challenge, the Banking or Business Correspondent (BC) model was promoted, particularly in areas with no bank branches. BCs serve as intermediaries, offering basic banking services to bridge the gap in rural India, where formal banking access is limited. They educate customers on digital payment benefits, provide training, and assure the safety of transactions. During the COVID-19 pandemic, BC deployment surged, ensuring essential banking services and efficient disbursement of government relief funds in underserved rural communities.

Highlights:

• The government addressed the last-mile challenge by promoting the Banking or Business Correspondent (BC) model, especially in remote areas with no bank branches.
• BCs act as intermediaries, offering basic banking services and educating customers on digital payments’ benefits and safety.
• During the pandemic, their deployment surged, ensuring essential banking services and government relief funds reached underserved communities.

Article By VAID, Rohanshi

Graphic By GE, Yixuan