India bank service extension

MINT reports that banks in India have started using third parties called 'correspondents' to take banking services to the unbanked. The technology involves a bank correspondent carrying a hand held device that can credit or debit a smart card held by the customer. Correspondents can disburse small loans, collect small deposits, sell micro insurance and mutual fund products. These distributors are paid mainly in the form of commissions on number of transactions done along with number of customers and business secured. Taken together with growing mobile banking, we may be seeing early signs of greater financial inclusion.

Be ready for the vegetable vendor who can now sell you carrots while conducting your banking business !