The unique strengths of women Banking Correspondents positively influence poor household’s engagement with financial services. Discuss (200 Words)
Refer - Business Line
Enrich the answer from other sources, if the question demands.
IAS Parliament 4 years
KEY POINTS
· It has been widely recognised that Business Correspondents (BCs) are the prime drivers of financial inclusion in India.
· Banking Correspondents have emerged successful in communicating the benefits of financial offerings.
Women BCs and banking network
· Women agents have distinctive strengths that help them better serve their customers.
· Women customers find women agents easier to approach, trustworthy, and great at maintaining confidentiality.
· Women agents completed 19 per cent more transactions and had 45 pre cent higher conversions on a newly-launched small savings scheme than their male counterparts.
· This is because women agents are able to visit women customers more freely at their home, interact with them closely and cherish their trust.
· It has been noted that women agents are more likely to stay agents for longer duration even when transactions do not generate as much revenue for the agent, providing continued access to the community.
Low number of BCs
· In India, while women account holders constitute 55 per cent of the total PMJDY portfolio, less than 10 per cent of business correspondents are women.
To increase efficiency of banking correspondents
· Affirmative actions are needed from financial service providers to correct the current under-representation of women BCs.
· Including setting specific targets for their staff and corporate BCs, and training and incentivising corporate BCs to identify potential women candidates.
tina 4 years
Could you please review the answer?
IAS Parliament 4 years
Try to stick to the word limit. Keep Writing.
tina 4 years
Priya Verma 4 years
Please review.
IAS Parliament 4 years
Good attempt. Try to stick to word limit. Keep Writing.
