A Critical Look at the Expansion of Banking Services Through the Business Correspondent Model: Observations from Andhra Pradesh

10 Pages Posted: 18 Sep 2013

Date Written: September 17, 2013

Abstract

We study the role of Business Correspondents in the current day expansion of banking services in Chittoor, Kurnool and Mahabubnagar Districts of Andhra Pradesh. Our objective is a critical look at the Reserve Bank of India attempt of “ensuring greater financial inclusion and increasing the outreach of the banking sector” through the Business Correspondent Model initiated in the Reserve Bank of India, 25 January 2006 circular. Although our observations from the field are by no means readily generalisable to entire India or to any other country, they might shed some light on what have been accomplished and what have been not through the Business Correspondent Model, at least, in the said districts of Andhra Pradesh. We then make some policy suggestions based on our observations from the field. Our main proposition is that the Individual Business Correspondents can be more effective than the other types of Business Correspondents in expanding financial inclusion through the Business Correspondent Model, at least, in Andhra Pradesh.

Keywords: Banking, Financial Inclusion, Business Correspondents, Andhra Pradesh

JEL Classification: H50

Suggested Citation

Singavarapu, Ananth and Oncu, T. Sabri, A Critical Look at the Expansion of Banking Services Through the Business Correspondent Model: Observations from Andhra Pradesh (September 17, 2013). Available at SSRN: https://ssrn.com/abstract=2326841 or http://dx.doi.org/10.2139/ssrn.2326841

Ananth Singavarapu (Contact Author)

Independent ( email )

No Address Available

T. Sabri Oncu

SoS Economics ( email )

Cengelkoy Maslagi Sokak
No 10
Istanbul, 34680
Turkey
+90 538 378 5722 (Phone)

Register to save articles to
your library

Register

Paper statistics

Downloads
103
Abstract Views
577
rank
259,691
PlumX Metrics