Bank of Baroda has taken the aid of business correspondent model to go ahead with its motive of financial inclusion. The bank has plans to spread its services across 6000 villages in the upcoming years.
These villages would be served by around 1500 business correspondents who will not only cater to the deposit facility but would also offer loans and micro insurance products to the villagers.
The RBI had declared that all banks should come up with a financial inclusion plan by March following which BoB has come up with this plan which gives a major role to business correspondents.
It is suggested by sources that BoB has developed a technology based model which would be providing services to all villagers.
The plan says that each business correspondent would be provided a smart card based device which has a biometric identification system.
"An individual's bank account can be operated by this device. The business correspondent only needs to verify the individual through the device and once it's done, the service is provided,'' the source said.
Financial inclusion is the prime need of the hour- as has been declared by the RBI and the Centre.