Creating Financial Inclusivity: A Case-study of Banking ...

Table 5: No. of BCs appointed by private sector banksPRIVATE SECTOR BANKS1 Bank of Rajasthan Ltd NIL NIL2 Catholic Syrian Bank Ltd NR NR3 City Union Bank Ltd NR NR4 Development Credit Bank Ltd NR NR5 Dhanalakshmi Bank Ltd NR NR6 The Federal Bank Ltd 2 687 Yes Bank Ltd NIL NIL8 HDFC Bank Ltd NR NR9 ICICI Bank Ltd 38 13665910 IndusInd Bank Ltd NR NR11 ING Vysya Bank Ltd NIL NIL12 Jammu & Kashmir Bank Ltd NR NR13 Karnataka Bank Ltd NIL NIL14 Karur Vysya Bank Ltd NIL NIL15 Kotak Mahindra Bank Ltd NR NR16 Lakshmi Vilas Bank Ltd NIL NIL17 Nainital Bank Ltd 1 53218 Ratnakar Bank Ltd NR NR19 SBI Comm. & Inter. Bank Ltd NIL NIL20 The South Indian Bank Ltd NIL NIL21 Tamilnad Mercantile Bank Ltd NIL NIL22 Axis Bank Ltd 3 676000Total 44 813259NR- Not Reported6. Problems and ChallengesAlthough the Banking Correspondent Model has experienced some success, there have been severalhurdles and challenges. We have looked at some of the challenges in terms of different factors. Theyare:6.1 Operational Issues:a) Cash handling- Allowing BCs to handle cash is the biggest challenge. Ninety-nine percent of thefinancial transactions are in cash, warranting high-cost cash-handling operations and added operationalrisks. Moreover, clients tend to perceive that the BCs are the owners of the transactions and notfacilitating them on the banks’ behalf.