Context:
The Business Correspondent Resource Council (BCRC) has submitted a formal appeal to the Parliamentary Committee on Finance, urging a review of Bank Mitras’ commission structure and seeking infrastructure subsidies to support rural banking operations. The representation was made during a meeting with Bhartruhari Mahtab, Chairperson of the Committee.
What is the Bank Mitra Program?
The Bank Mitra program is an initiative under the Pradhan Mantri Jan Dhan Yojana (PMJDY) launched on August 28, 2014, that aims to extend banking services to unbanked and underbanked rural areas through appointed individuals called Bank Mitras, who act as business correspondents of banks.
The Department of Financial Services (DFS) within the Ministry of Finance of India is responsible for the scheme.
Objectives of the Bank Mitra Program
- Last-mile banking access in remote locations
- Facilitation of account opening and KYC procedures
- Promotion of financial literacy and awareness of banking products
Key Benefits
- Access to basic banking services (deposits, withdrawals, fund transfers) near customers’ homes
- Employment generation for local youth
- Cost-effective financial inclusion model
- Encourages saving and digital payments through AEPS (Aadhaar Enabled Payment System)
Impact on Financial Inclusion
- Boost in bank account penetration in rural and tribal belts
- Smooth disbursal of welfare schemes via Direct Benefit Transfer (DBT)
- Reduction in informal financial practices and frauds due to formal system presence
