Business Correspondent Interview Questions with Answers
Question: 1. What Is A Business Correspondents (bc)?
Answer:
Business Correspondents are retail sellers engaged through banks for supplying banking services at locations apart from a financial institution department/ATM. Basically, BCs permit a financial institution to amplify its outreach and provide restricted range of banking offerings at low cost. BCs, are an fundamental a part of a business approach for reaching extra economic inclusion.
Question: 2. What Are The Functions Of Bc?
Answer:
BCs are accepted to perform a diffusion of sports which encompass identification of borrowers, attend to collection of small price deposit, disbursal of small value credit score, recovery of major / series of hobby, sale of micro insurance/ mutual fund products/ pension products/ other third party products and receipt and transport 7 of small cost remittances/ different payment devices, creating awareness about savings and different products, training and recommendation on managing cash and debt counseling, and so forth.
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Question: three. What Are The Products Offered Through The Bc Channel?
Answer:
The following merchandise are offered through the BC Channel :
Small Savings Accounts
Fixed Deposit and Recurring Deposit with low minimal deposits
Remittance to any BC customer
Micro Credit
General Insurance.
Question: four. Who Are Eligible To Act As Bcs?
Answer:
Initially the entities authorized to act as BCs protected NGOs/ MFIs installation underneath Societies/ Trust Acts, Societies registered under Mutually Aided Cooperative Societies Acts or the Cooperative Societies Acts of States; Section 25 organizations and publish places of work. As regards Section 25 companies, it turned into finally clarified that banks can have interaction such organizations as BCs provided the organizations are stand-alone entities or Section 25 groups wherein NBFCs, banks, telecom companies and other company entities or their retaining groups do no longer have holdings in excess of 10%.
The list of humans who may be engaged as BCs was further extended to include individuals like retired financial institution personnel, retired instructors, retired authorities personnel and ex-servicemen, character proprietors of kirana / scientific /Fair Price shops, individual Public Call Office (PCO) operators, marketers of Small Savings schemes of Government of India/Insurance Companies, folks who own Petrol Pumps, legal functionaries of nicely run Self Help Groups (SHGs) which might be related to banks. Any different person together with the ones operating Common Service Centres (CSCs) also are allowed to act as BCs of banks.
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Question: 5. Are Non-banking Finance Companies (nbfcs) Allowed To Act As Bcs ?
Answer:
Non-Banking Finance Companies (NBFCs) were not allowed to be appointed as BCs by way of banks. However the RBI has now permitted to have interaction non-deposit taking NBFCs (NBFCs-ND) as BCs, challenge to the subsequent situations:
It must be ensured that there may be no commingling of bank finances and people of the NBFC-ND appointed as BC.
There ought to be a selected contractual association among the financial institution and the NBFC-ND to make certain that each one viable conflicts of hobby are safely taken care of.
Banks need to ensure that the NBFC-ND does not adopt any restrictive practice along with imparting financial savings or remittance capabilities only to its very own customers and pressured bundling of services provided through the NBFC-ND and the financial institution does not take location.
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Question: 6. What Is The Distance Criteria For Bcs ?
Answer:
With a view to ensuring adequate supervision over the operations and sports of the retail outlet/sub-agent of BCs via banks, every retail outlet/sub-agent eight of BC is needed to be connected to and be under the oversight of a selected financial institution department special because the base department and the gap between the place of business of a retail outlet/sub-agent of BC and the base department as stipulated by using RBI in advance became not more than 30 kms in rural, semi-city and urban areas and 5 kms in metropolitan centres. However the RBI has now removed the gap standards.
Question: 7. What Is The Remuneration Paid To The Bc?
Answer:
The BC remuneration consist of constant and variable thing which is fee primarily based.
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Question: eight. List Of Business Correspondent Companies In India?
Answer:
The following Business Correspondents are listed based at the number one records received from them:
Action for Women and Rural Development (AWARD)
CASHPOR Micro Credit
Commonwealth Inclusive Growth Foundation (CIGF)
Drishtee Development and Communication Limited
Ekgaon Technologies Private Limited
Eko India Financial Services Private Limited
Guidance Society for Labour Orphan and Women (GLOW)
i25 Rural Mobile Commerce Services
Janalakshmi Social Services
Mahila Chetna Manch
Prayas Juvenile Aid Centre
Samvriddhi Inclusive Growth Network (SIGN)
SEED Financial Services
BASIX Sub-K iTransactions Limited
Swadhaar FinAccess
Zero Microfinance and Savings assist Foundation
Association for Rural Development (ARD)
Namathu Deepam Micro Finance Services (NMFS)
National Mother and Child Welfare Organisation (NAMCO)
Fino Fintech Foundation
Sambhav Social Service Organisation
Universal Welfare Fund (UWF)
Center for Rural Health and Social Education (CRHSE)
Vikas Gram Udyog Mandal (VGUM)
Lucknow Mahila Sewa Trust (LMST)
Glodyne Technoserve Ltd
Dr. Daulatrao Sonuji Aher Gramin Bigarsheti Sah Pat Kalwan
Shree Swami Samarth Nagari Sah Pat Maryadit Kalwan
Shree Swami Samarth Vyapri Sah Pat Maryadit Satana
Sharadrao Pawar Nagari Sahakari Pat Maryadit Deola
Shree Mahavir Nagari Sahakari Pat Maryadit Satana
Yashwantrao Chavan Nagari Sah Pat Maryadit Kalwan
Ashapuri Mahila Nagari Sah Pat Maryadit Deola
Technology Providers for BCBF Model :
FINO
EKO
A LITTLE WORLD
NOKIA
Integra
Question: nine. Functions / Activities Of Business Facilitators?
Answer:
Identification of debtors and fitment of sports
Collection and initial processing of loan applications inclusive of verification of number one statistics/information
Creating consciousness approximately financial savings and different products and schooling and advice on coping with money and debt counseling
Processing and submission of applications to banks
Promotion and nurturing Self Help Groups/Joint Liability Groups
Post-sanction monitoring
Monitoring and handholding of Self Help Groups/Joint Liability Groups/Credit Groups/others
Follow-up for restoration.
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Question: 10. Who Is Eligible For Business Facilitator (bfs)?
Answer:
Under the “Business Facilitator” version, banks might also use the offerings of intermediaries which includes:
NGOs/SHGs
Farmers Clubs
Cooperatives
Community based totally companies
IT enabled rural shops of company entities
Post Offices
Insurance dealers
Well functioning Panchayats
Village Knowledge Centres
Agri Clinics
Agri Business Centres
Krishi Vigyan Kendras
KVIC/KVIB gadgets
Question: eleven. What Are The Benefits Of Using Bcs?
Answer:
Some of the advantages in using BCs as indexed under:
A better alternative for financial institution branches : Generally, a rural financial institution branch can serve 5,000 to 10,000 households in 15 to 20 villages within a radius of 15 kms. A Public Sector Bank department may additionally require extra than 5 years to serve unbanked regions in India, even as a non-public sector & foreign financial institution with IT connectivity may additionally require about 5 instances more time. Further, obtaining permission to open a branch is a protracted and chronic process. The BC option potentially enables banks to reach out a whole lot faster and at a much decrease cost.
Reaching the unreached : The version permit banks to increase economic services to the unreached clients past their branch network as beneficiaries of the BCs are typically positioned at unbanked and under banked regions.
Better loan overall performance: Since neighborhood stakeholders like NGOs, post places of work, and so on., are concerned within the procedure, they know the clients at a non-public stage. The private connection complements the clients’ accountability to the BC, which in turn improves loan performance and reimbursement prices.
Doorstep banking: D isbursement and loan recovery at the doorsteps of the beneficiary.
Quick expansion: Scaling up of this version is possible within a brief span of time.
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Question: 12. What Is The Guidelines For Engaging Business Correspondents (bcs)?
Answer:
Banks can also formulate a coverage for attractive Business Correspondents (BCs) with the approval in their Board of Directors. Due diligence can be performed on the individuals/entities to be engaged as BCs previous to their engagement.
The due diligence workout may additionally, inter alia, cowl elements together with
Reputation/marketplace standing
Financial soundness
Management and company governance
Cash managing capacity
Ability to put into effect generation answers in rendering economic offerings.
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Question: thirteen. What Is Bcbf Model?
Answer:
With the goal of ensuring extra economic inclusion and increasing the outreach of the banking region, in Jan 2006 based at the guidelines of Khan Commission, the Reserve Bank of India issued a new set of guidelines allowing banks to rent categories of intermediaries – Business Correspondents (BCs) and Business Facilitators (BFs) – to amplify their commercial enterprise. According to the tips scheduled industrial banks consisting of Regional Rural Banks (RRBs) and Local Area Banks (LABs) were authorised to use the services of intermediaries in providing economic and banking services in the course of the united states of america or even in faraway areas.
In this version BCs are accredited to perform transactions on behalf of the bank as retailers, the BFs can refer customers, pursue the customers’ suggestion and facilitate the bank to carry out its transactions, but can not transact on behalf of the financial institution. Recently Reserve Bank of India (RBI) has permitted all Business Correspondents (BCs) operating for one particular bank; carry out commercial enterprise for other banks too.
As reported by way of the banks below their economic inclusion plans almost 2,48,000 BC marketers had been deployed via banks as on March 31, 2014 that are offering offerings via more than three,33,000 BC stores. Nearly 117 million basic saving financial institution deposit debts (BSBDAs) opened through BCs remained amazing as on March 31, 2014.
Question: 14. Where Can The Customer Access His Account Under The Bc Model?
Answer:
Customer can get right of entry to his account thru BC dealers or Customer Service Points, USBs, Kiosks, and so on. Appointed by way of the BC for servicing the customers.
Question: 15. How Does A Bc Function?
Answer:
The BC uses Information and Communication Technology (ICT) based totally devices which include hand held machines, clever card primarily based devices, cellular telephones, and so on. To perform the banking transactions.
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Question: 16. Whether Our Money Is Safe If We Deposit With Bc?
Answer:
BC is a mode of offering banking provider at the doorstep as bank department is at region. Depositing money with BC is as precise as depositing with a bank branch. The transactions are completed thru the ICT primarily based gadgets and accounted within the books of the banks thru on line mode o real time foundation. The clients get instant verification of their transactions as coins deposited / withdrawn by means of clients thru the BC is mentioned via problem of a receipt on behalf of the bank. Additionally, transactions via BCs are carried out on the premise of our biometrics or a PIN range and therefore no one else can do the transactions in our account.