BCFI begins process to seek SRO status

The Business Correspondent Federation of India (BCFI) is about to apply for self-regulatory organisation (SRO) status.

- RAGHU MOHAN

"We have started the process internally. We may either go alone, or team up with the Payments Council of India or the Fintech Convergence Council," said a source.

While there is no category of non-banking financial companies: business correspondents (NBFC: BCs), they play a huge role in the financial inclusion landscape by aiding last-mile credit delivery. The stress on financial inclusion has also increased the intersection points of BCs with the wider financial world. This calls for better governance standards, higher investments and business models, and thus the need for a BC-SRO. BCs have also, of late, been sounding the Ministry of Finance that the channel is becoming unviable.