Are you willing to know the detailed information about the Banking Correspondents? Here is the article which provides you the clean and clear information about the Banking Correspondents. It is a bank which provides Services on behalf of the another, equal (Or) unequal, Financial Institutions. This bank can also facilitate with the wire transactions, and conduct business transactions to accept deposits and gather documents on behalf of another financial institution.
Banking Correspondents are those who have individuals/ entities which are engaged by a bank in India as well as Local Area Banks for providing banking services in Unbanked/ underbanked Geographical territories.
This Banking Correspondent works as an agent of the bank and it acts as a proxy for the business which has physical locations that the customers can visit to conduct business (brick and mortar of the bank).
It Engages with the
- Identification of Borrowers.
- Collection and preliminary Processing of loan applications which includes verification of primary Information of data.
- It creates awareness about savings and other products and Education and advice on managing money and debt counseling.
- It processes and submits the applications to the banks.
- It is used for promoting, Nurturing and Monitoring of Self Help Groups/ Joint Liability Groups/ Credit Groups/ Others.
- It follow-up for recovery.
- It has a Post- sanction Monitoring.
- It disbursal the small value of the credit.
- Recovery of principles and collection of interest.
- Collection of the small value of deposits.
- Sale of Micro Insurance/ Mutual Fund Products/ Pension Products/ Other Third-party Products and many more.
- It has a receipt and delivery of small value of remittance and other payment instructions.
