Mumbai, Sept 12 (KNN) Creating more job opportunities in the country, the RBI has asked banks to explore the possibility of using the services of business correspondents to distribute banknotes and coins.

“With a view to effectively meeting the growing demand for banknotes and coins in the country, there is a need for identification of alternative avenues for their distribution by banks,” RBI said in  its directives to the banks.
 
“For this purpose, banks may explore the possibility of offering these services through Business Correspondents (BC) and consider engaging the services of Cash in Transit (CIT) entities for the purpose of distribution of banknotes and coins, thereby addressing the last mile connectivity issues,” RBI said.

The scope of activities of business correspondents includes identification of borrowers, collection and preliminary processing of loan applications, creating awareness about savings and other products and processing and submission of applications to banks.

The business correspondents would also be required to promote, nurture and monitor the Self Help Groups/ Joint Liability Groups/Credit Groups/others; and they would also follow-up for recovery, disbursal of small value credit and collection of small value deposits.

Non-governmental organisations, microfinance institutions, section 25 companies and post offices, among others, could act as business correspondents. (KNN)