Proposal for undertaking a study on the Impact study of financial and banking services of Banks through business correspondents

in selected villages in the state of Uttar Pradesh.

SUBMITTED TO:
Dr. Amarendra sahoo Regional Director Reserve Bank of India, Lucknow

SUBMITTED BY:
Priyanka singh Summer Trainee (SRMGPC, Lucknow) Dept. of Rural Planing & Credit Development Reserve Bank of India, Lucknow

TABLE OF CONTENT

y INTRODUCTION .
y SUBJECT OF STUDY .. y OBJECTIVE OF STUDY .. y STUDY PLAN ... y STUDY AREA y SOURCE OF COLLECTION OF DATA FOR STUDY.. y STUDY DURATION . y FUTURE SCOPE.

Introduction
Business correspondents
A Reserve Bank of India Working Group has recommended the following new entities for appointment of Business Correspondents (BCs) for banks in rural and semi-urban areas: i) Individual kirana/medical/fair price shop owners ii) Individual Public Call Office (PCO) operators iii) Agents of Small Savings Schemes of Government of India/Insurance Companies iv) Individuals who own petrol pumps v) Retired teachers vi) Authorised functionaries of well run Self Help Groups (SHGs) linked to banks vii) Non deposit taking NBFCs (non-banking finance companies) in the nature of loan companies whose micro finance portfolio is not less than 80 per cent of their loan outstanding in the financially excluded districts as identified by the Committee on Financial Inclusion (Chairman: Dr. C. Rangarajan) While making this recommendation, the Reserve Bank of India Working Group has expressed the view that banks would need to accept the BC model as extremely vital for achieving the goals of financial inclusion. As the traditional brick and mortar branches could penetrate into remote areas of the vast country only to a limited extent, this model presented banks with a workable option to provide banking services in inaccessible areas in a cost-effective manner. The Working Group has noted that BCs should be used not only for opening and servicing no-frills accounts but for the full range of financial activities. Further, with the Central and State Governments planning to route various government payments through the banking system, the BCs could be the ideal medium for the banks to handle the huge volumes of low value transactions. As experience showed, the BC model coupled with ICT solutions could help banks substantially increase their outreach facilitating financial inclusion.

To:

Dr. Amarendra Sahoo Regional Director Reserve Bank of India, Lucknow

From:

Priyanka Singh Summer trainee Dept. of Rural Planning & Credit Development Reserve Bank of India, Lucknow

Subject: Proposal for undertaking a study on the Impact study of financial and banking services of Banks through BC in selected villages in the state of Uttar Pradesh. Date: May 13, 2011

I am Priyanka Singh, summer trainee from Shri Ramswaroop Memorial Group of Professional Colleges, Lucknow . I seek to take up a summer training project on Impact study of financial and banking services of Banks through business correspondents in selected villages in the state of Uttar Pradesh under direct guidance and supervision of Mr. H. K. Soni, (DGM) with your prior approval. The project study could be summarized under three phases: 1. Pre field work

2. Field work 3. Post field work Under pre field work : Objective of study: 1. To do the detailed analysis of financial and banking services of banks through BC in the selected villages. 2. To determine the level of awareness of people in various financial products and interest in undergoing courses in financial services. 3. What are the difficulties faced by the villages in assessing the banking services through BC? 4. What are the different strategies and policies are taken by the banks to improve these services? 5. Finally, take the suggestions from the villagers that what they think and what needs to be done by banks to make them financially included. Study plan: Study is exploratory in nature, a simple random & convenient sampling has taken into consideration and about 10 to 12 villages are taken for study. Study Area: Lucknow has taken in order to have all the possible information regarding the subject study. Source of collection of data for study: Primary source: Primary data will be collected directly by the way of questionnaire filled in by the migrant peoples. y y y y Observation Interview Records Telephonic interview

Secondary source: Internet , magazines, journals, bulletins etc. Duration of study: 2 months (May June 2011) Future scope: y By this study we can analyze that how can Banks, on various grounds can improve its strategies.

The report can be utilized for further learnings and considerations for the future course of action. Under field work: Filling questionnaire by the target respondent, taking interview, gathering information etc. Under post field work: Data examining, analyzing tables, information, records etc and after that I draft the report, then after taking the approval I make the final report.

(Priyanka Singh, Intern)

(QUESTIONNAIRE FOR BUSINESS CORRESPONDENTS

1. Name: .. 2. Phone no.: .. 3. Age group: 20-30 , 30-40 , 40-45 , 45- above . 4. Qualification: 5. Occupation: .............................. 6. No. of dependents: 7. Amount of Land holding of their families: 8. Monthly income: 2000-4000, 4000-6000 , 6000-8000 , 8000- above 9. Reason for staying here: .. 10. How much amount you send to your family . 11. Which mode? ..................................

12. What are the charges taken by them? ...................... 13. Reason for choosing this mode: 14. Any suggestions you want to give for remittance . ..