To Study Problems Faced by Business Correspondent in the process of Financial Inclusion

Abstract

Financial inclusion, the provision of affordable financial services to disadvantaged and low-income segments of society, is crucial for reducing poverty and fostering economic development, particularly in rural areas. This study explores the challenges faced by Business Correspondents (BCs) in promoting financial inclusion in rural regions. Using a mixed-method approach, data were collected from 250 BCs through structured questionnaires and face-to-face interviews. The analysis identified several significant challenges, including poor internet connectivity, software and server downtimes, lack of customer awareness of financial products, and inadequate compensation for BCs.

Key findings highlight that 20.8% of respondents cited poor internet connectivity as a hindrance to seamless service delivery, while 54.8% reported issues with software and server downtimes. Additionally, 76.8% of BCs indicated a lack of customer awareness about financial services, and 82.4% expressed concerns over insufficient commissions.

To address these challenges, the study recommends enhancing technological infrastructure, implementing comprehensive financial literacy programs, ensuring fair compensation for BCs, and providing ongoing training and support. Policy and regulatory support from the government, along with collaborative efforts among stakeholders, are also essential.

Ultimately, improving the Business Correspondent model through these targeted interventions can significantly advance financial inclusion, empower rural populations, and contribute to broader economic development and poverty reduction efforts.