State Bank of India (SBI), for instance, is exploring a tie-up with the department of posts to reach out to the bank’s massive customer base. SBI is also looking to divert its business correspondents for collection of farm loans, according to a senior bank official. Currently, SBI has nearly 60,000 business correspondents who help with opening accounts, remittances and other basic banking operations. It’s time we engage with more business correspondents in this way so that there is a regular cash flow and accounts don’t go into stress,” said a senior bank official, who requested anonymity. Bajaj Finance Ltd, one of the country’s largest NBFC, is also looking to augment its collection capacity.

Source: Hindustan Times June 01, 2020 02:56 UTC