A Study on The Impact of Business Correspondents and Business Facilitators in Financial Inclusion

Abstract

The present paper focuses on the impact of Business Correspondents and Business Facilitators in Financial Inclusion. The main Objective of the study is to understand the functioning of Business Correspondents and Business Facilitators through different models and agencies in different type of banks. The study is important because it helps to know the financial awareness of people in rural areas, the number of people using the banking services and to create awareness of financial inclusion among them. The research work is mainly focused towards Vikarabad District as the number of rural and semi-urban areas are more in that region. Field visits have been executed to collect primary data through Direct interview and Questionnaire method. Descriptive analysis and Chi-square test have been conducted to know the significance of BC/ BFs in promoting financial inclusion among all other modes or approaches to financial inclusion. The major important findings have been mentioned along with issues faced by BC / BFs, and suggestions are also given to resolve such issues. Finally, a brief conclusion on the observations made during the research is mentioned, explaining the significant impact made by the BC / BFs over the financial habits of the people in rural areas and the need for improving their saving habits through banking facilities and increasing digital banking is explained.