Business Correspondents are retail agents engaged by banks for providing banking services at locations other than a bank branch/ATM.
Banks are required to take full responsibility for the acts of omission and commission of the BCs that they engage and have, therefore, to ensure thorough due diligence and additional safeguards for minimizing the agency risk.
Basically, BCs enable a bank to expand its outreach and offer limited range of banking services at low cost, as setting up a brick and mortar branch may not be viable in all cases.
BCs, thus, are an integral part of a business strategy for achieving greater financial inclusion
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