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Thursday, July 19, 2012

Business Correspondents Agents (BCAs)


F. No. 8/25/2011-FI Vol II
Government of India
Ministry of Finance
Department Financial Services
(FI Section)3rdFloor, Jeevan Deep Building,
Parliament Street, New Delhi 
Dated: 10thJuly, 2012
To,
Chairman / CMDs of All PSBs


Chairman RRBs (through Sponsor Banks)


Sub:  Preparation of  Implementation Plan for engagement and activation of 
Business Correspondents Agents (BCAs) and monitoring progress thereof - regarding




Sir (s),n
I am directed to refer to the RFP floated by various Public Sector Banks on 
geographical cluster basis for  Business Correspondents services for  ensuring 
greater financial inclusion and to provide comprehensive financial services to the 
underprivileged, particularly in unbanked and under-banked areas.  The Business 
Correspondents  Agents  will render services on behalf of the banks, on contract 
basis, through their outlets through use of Information and Communication 
Technology  for various PSBs and RRBs. Selection of Service Provider / Business 
Correspondent and the rates for all the  20 clusters  is likely to be  finalized by the 
respective lead banks by 31stJuly, 2012. 


2. The lead banks will thereafter be required to ensure a smooth and expeditious 
implementation  so that the objective of Financial Inclusion is  achieved in all the 
Financial Inclusion villages. This will in particular require the following steps to be 
taken by the lead bank and the other banks:-


(a) Signing of agreement  with the selected  Service Provider  by all  the 
member banks operating in the respective clusters. 


(b) Infrastructure Establishment  by the Service Provider in terms of 
procurement of  hardware,  software &  hardware installation, procurement of 
PoS machine etc.


(c) Selection  of BCAs  by  Service Provider in terms of  the RFP in 
consultation with Branch Manager for all the FI Villages


(d) Training of BCAs in consultation with LDM as per the new course 
designed by NABARD / IIBF.


(e) Enrollment of customers including collection of biometric and other 
details.


(f) Issuance of Cards by Banks etc.


(g) RRBs, operational in the geographical cluster need to be also informed 
about the details of the RFP finalized so that they also sign an agreement with 
the Service Provider, as per terms and conditions of the RFP.


(h) There is a need for a regular interaction between all the member banks 
who have signed the agreement so that all the operational issues are 
resolved.


(i) Financing of  PoS Machines to the selected  Service Provider is 
essential. A model scheme has already been circulated based on which all 
banks have finalized or, are in the process of finalizing it. It is necessary that 
financing is extended to the  Service Provider on need basis, as per this 
scheme, by following standard banking procedures.


(j) It would be desirable that one district in the cluster is chosen as a pilot 
and all member banks in this district get the BCAs engaged within a period of 
one month from the date of signing of the agreement. This will enable the 
Service Provider as well as the banks to resolve all technical and operational
issues which will be useful for ensuring a rapid implementation in rest of the 
districts in the cluster.


3. It is essential that all the concerned banks monitor the  implementation on a 
regular basis. In particular, it will be important to ensure that BCAs are engaged and 
activated by the Service Provider on priority within the prescribed period of six 
months. Each BCA is also expected to enroll at least 25% of the target households in 
the area of operation within six months of starting the activity and at least 300 
accounts in the first year of operation. It is, thus, imperative for Banks to prepare an 
Implementation Plan to enable them to  monitor the engagement and activation of 
BCAs. Format for preparation of this  Implementation Plan indicating district-month
wise rollout plan for a State/UT is enclosed herewith as Annexure PI- P3.


4. The concerned member banks will  then  furnish the district-month wise 
Progress Report to the respective SLBC Convener of the State/UT in the format at 
Annexure  R1 which should consolidate the information in formats as given in 
Annexure R2 & R3 and furnish to the Department.5. District-Month wise  Implementation Plan as explained above should be prepared and furnished to the SLBC Convener by all the concerned member banks by 30thJuly, 2012 in Annexure P1. 


The SLBC Convener shall thereafter consolidate the information in Annexure P2 & P3 and furnish to this department by 1thAugust, 2012. Progress Reports should be prepared and sent to the SLBC Convener of the State/UT or to this Department, as the case may be, starting from the month of July, 2012, for which the report be sent by the member Banks to the SLBC Convener by 5th August, 2012 and by SLBC Convener to the Department by 1thAugust, 2012

Reports for subsequent months be similarly furnished by 5th& 10th
of the succeeding month. The information may only be sent through email at fi-dfs@nic.in and no hard copy should be sent to this Department.


6. This issues with the approval of Secretary (FS).


Yours sincerely,
(Jitendar Kumar Mehan) 
Under Secretary (FI) 
01123748767


Encl. As Above
Copy to:  


1. Chairman, NABARD 
2. SLBC Convener Banks for information and necessary action
3. Incharge NIC, DFS to place a copy of the letter along with Annexure on DFS 
website (“What New” and FI Circulars Section)Annexure R-1
Name of Member Bank Name of the State/UT
Name of Service Provider Month & Year
Name of District Total No. of FI Villages
No. of BCAs scheduled to be engaged during the month as per Implementation Plan No. of BCAs engaged during the month No. of FI Villages Covered


Remarks
Annexure R-2


Name of SLBC Convener Month & Year
Name of Service Provider Name of the State/UT
Name of District Total No. of FI Villages
No. of BCAs scheduled to be engaged 
during the month as per Implementation PlanNo. of BCAs engaged during the month No. of FI Villages Covered


Remarks
Annexure R-3
Name of SLBC Convener Name of the State/UT
Name of Service Provider Month & Year
Name of Member Bank Total No. of FI Villages
No. of BCAs scheduled to be engaged 
during the month as per Implementation PlanNo. of BCAs engaged during the month Cumulative No. of FI Villages Covered
Remarks
District - Monthwise Progress Report on engagement of BCAs for Member Bank in a State/UT
District - Monthwise Progress Report on appointment of BCs for Member Bank in a State/UT
Bank - Monthwise Progress Report on appointment of BCs for State/U

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