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Financial Inclusion (FI) Business Correspondent (BC) Channel Revision in Commission Structure

The document is a circular from the Department of Financial Inclusion and Micro Markets announcing revisions to the commission structure for banking services provided through Business Correspondent kiosk outlets. Some of the major changes include introducing separate commission rates for CSPs in urban/metro areas due to higher costs, improving remuneration for opening savings bank accounts through e-KYC, removing recovery fees from non-home branch customers to make commissions uniform across branches and CSPs, and increasing certain transaction limits to provide more business opportunities to CSPs. The revised commission structure is effective from April 1, 2021.

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Manoj Kumar Sharma
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71 views

Financial Inclusion (FI) Business Correspondent (BC) Channel Revision in Commission Structure

The document is a circular from the Department of Financial Inclusion and Micro Markets announcing revisions to the commission structure for banking services provided through Business Correspondent kiosk outlets. Some of the major changes include introducing separate commission rates for CSPs in urban/metro areas due to higher costs, improving remuneration for opening savings bank accounts through e-KYC, removing recovery fees from non-home branch customers to make commissions uniform across branches and CSPs, and increasing certain transaction limits to provide more business opportunities to CSPs. The revised commission structure is effective from April 1, 2021.

Uploaded by

Manoj Kumar Sharma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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eCircular

Department: FINANCIAL INCLUSION


AND MICRO MARKET
Sl.No.: 142/2021 - 22
Circular No.: NBG/FI &
MM/BC/CSP/3/2021 - 22
Date: Sat 15 May 2021

All Branches / Offices

Madam / Dear Sir,

Financial Inclusion (FI)


Business Correspondent (BC) Channel
Revision in Commission Structure

Please refer to e-Circular No NBG/FIMF/BC/CSP/16/2018-19 dated


15.01.2019, NBG/FIMF/BC/CSP/17/2018-19 dated 16.02.2019 and
NBG/FIMF/BC/CSP/2/2019-20 dated 20.04.2019, wherein commission
payable for various banking services provided through the Kiosk Outlets
were last revised.

2. A need is felt to revisit the commission structure as considerable time


has elapsed. Accordingly, the competent authority has approved the
revised commission payable to BCs as per Annexure enclosed.

The major changes are as under:

 CSPs at Urban/Metro centres have to incur higher cost in respect


of rentals and other infrastructure. Hence, separate commission
structure has been introduced for CSPs at these locations.

 Focus on promoting SB account opening through e-KYC, with


improved remuneration.

 In CBS environment, there is no distinction between Home & Non-


Home branch customers. Therefore, recovery from Non-Home
branch customers at CSP outlets is done away with, to make it at
par with Branch channel. This will give a boost to migrating
customers from Branches to CSPs, thus help in decongesting the
branches.
 Maximum amount for issuing STDRs increased to Rs. 20,000/- in
case of Urban/Metro CSPs from Rs. 10,000/- at present. This will
provide more business opportunities to the CSPs, at these centres.
 Maximum amount for IMPS (Cash) increased to Rs. 10,000/- from
Rs. 5,000/- at present. It will provide more business opportunities
to the CSPs.

 Commission payable on opening of Flexi RD accounts reduced to


Rs. 10/- from existing Rs. 15/- per account.

 Commission on weekly average balance maintenance is increased


@ 1.10% with hike in threshold from Rs. 1700/- at present to
Rs. 2000/- and above, as the average balance in the channel is
Rs. 2,720/- as on 31.03.2021.

 Incentivisation on non-zero balance portfolio is withdrawn, as such


accounts constitute to less than 2% of the total FI accounts.

The revised commission structure is effective from 1st April 2021.

3. Please bring the contents of this circular to the knowledge of all


concerned for meticulous compliance.

(R. C. Panda)
Chief General Manager (FI&MM)

Encl: As above

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