The Role of SHG Members as Business Correspondent Agents in Uttar Pradesh: Saga of Success

This paper provides insights into the role played by Business Correspondents and Business Facilitators in extending banking facilities to villages located at a distance from bank branches. The identification of a member of a Self-Help Group (SHG) from the village to work as the Business Correspondent Agent (BCA) of the bank helps in securing confidence of the most disadvantaged sections of the society. The paper provides details of activities undertaken by the BCA for ensuring extension of various banking facilities up to the doorstep of villagers. The support provided by the technology service provider (TSP) for confidence-building of the BCA and ensuring uninterrupted services have also been highlighted. The paper also brings out the bank’s commitment to this model by entrusting various tasks to the BCA. This helps to improve their viability and also to comply with various systems and procedures for availing their continuous service. Overall, SHG members as BCAs have proven to be a successful model for extension of banking facilities in the study area. However, continuous efforts are required from the TSP and the bank to ensure viability and success of this model.