FinMin considers asking banks to implement geotagging for all BCs | Current Affairs | Vision IAS

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FinMin considers asking banks to implement geotagging for all BCs

2 min read

Geo-Tagging of Business Correspondents (BCs)

The Union Ministry of Finance is planning to implement geotagging for all Business Correspondents (BCs) to enhance accountability and improve monitoring of their activities.

Objectives

  • Enhance transparency and real-time monitoring of BC activities.
  • Ensure effective service delivery in remote areas.
  • Bridge the urban-rural divide for targeted financial inclusion.

Benefits

  • Provide data on customer behavior for informed decision-making.
  • Aid in fraud prevention by monitoring transaction patterns.
  • Facilitate community development through targeted initiatives.
  • Enhance marketing campaigns based on regional demographics.

Compliance and Device Upgradation

The Ministry may direct banks to upgrade devices to meet UIDAI standards, enhancing operational efficiency and regulatory compliance.

Jan Dhan Darshak (JDD) App and Data Integrity

  • Geographic Information System (GIS)-based app monitors banking outlet availability.
  • Focus on sanitizing data to maintain the integrity and security of user information.

Challenges with BC Targets and Financial Burdens

  • Re-evaluate unrealistic targets set for BCs to improve performance and morale.
  • Rationalize caution money by linking it to the number of agents deployed.

Bank Branch Expansion and BC Deployment

  • Ensure villages with a population of 3,000 have bank branches; remaining areas covered by the India Post Payments Bank.
  • 521 branches allocated; 442 opened by July 2023, with 79 yet to be established.
  • 552 locations pending BC deployment; 348 are within Public Sector Banks.
  • Tags :
  • Business Correspondents (BCs)
  • Data Integrity
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