Inclusive Banking Through Business Correspondents (Advanced Course) book by Indian Institute of Banking & Finance

This comprehensive guide is essential for individuals aspiring to become Business Correspondents (BCs) or Business Facilitators (BFs) in India's evolving financial landscape. This guide is designed to equip candidates with the knowledge and skills needed to effectively serve as a bridge between banks and the unbanked or underbanked segments of society, thereby contributing significantly to the overall economic development of India.

This book has been developed under the guidance of the Indian Banks' Association (IBA) and the Reserve Bank of India (RBI). It addresses the operational and reputational risks banks face when engaging BCs and underscores the need for skill development in these roles. It adopts a modular approach, ensuring a coherent and logical flow of content, and the content includes a mixture of theoretical knowledge and practical insights, which is as follows:

General Banking
Financial Inclusion and Role of Business Correspondents
Technical Skills
Soft Skills and Behavioural Aspects
It is an invaluable resource for practising bankers and institutions seeking a deeper understanding of financial inclusion, the BC/BF model, and the certification aspirants.

The Present Publication is the 2024 Edition, revised and updated by Mr K.S. Padamnabhan | Retd. CGM – NABARD. Taxmann exclusively publishes this book for the Indian Institute of Banking and Finance with the following noteworthy features:

[Structure of Indian Banking and Types of Banks] This section discusses the Indian banking system's framework, exploring the variety of banks and their functions alongside recent trends in banking
[Banking Services and Operations] It discusses various deposit schemes, account opening procedures, KYC mechanisms, and banking operations. It also includes chapters on accounting, finance, and principles of sound lending, with a special focus on retail lending
[Risk Management and Regulatory Frameworks] The book addresses asset classification, methods of recovery, and the integrated ombudsman scheme, emphasizing the importance of risk and fraud management in banking operations
[Financial Inclusion and the Role of BC/BF] This critical section discusses financial inclusion, detailing the BC/BF model, the need for such a model, and the roles and responsibilities involved. It also sheds light on government schemes promoting financial inclusion.
[Technical Skills for Business Correspondents] This section makes the reader understand how to handle micro ATMs, biometric devices, basic connectivity issues, digital banking products, and recent developments in digital banking
[Soft Skills and Behavioural Aspects] The book underlines the importance of soft skills for business correspondents, including relationship building, negotiation skills, dealing with various types of customers, and strategies for loan recovery.
The detailed contents of this book are as follows:

Module A – General Banking
Structure of Indian Banking and Types of Banks
Overview of the Indian banking system
Functions and regulation of banks in India
Recent trends in banking
Various Deposit Schemes and Other Services
Details on different types of deposits
Introduction to the DICGC and RBI Retail Direct Scheme
Discussion on remittances
Account Opening, On-boarding Process, KYC Mechanism, and Operations
Procedures for opening bank accounts
Importance of KYC in banking operations
Guidelines for account operations and closure
Accounting, Finance & Operations
Basics of accounting and book maintenance
Understanding of finance and bank operations
Principles of Sound Lending
Discussion on lending principles
Relationship between interest spread and profitability
Loans and Advances with a Special Focus on Retail Lending
Various types of loans, including retail, education, and housing loans
Introduction to credit cards and MSME loans
Asset Classification and Methods of Recovery
Definition and classification of Non-Performing Assets (NPAs)
Various methods for loan recovery
Grievance Redressal Mechanism in Banks and Integrated Ombudsman Scheme
Understanding customer grievances and redressal mechanisms
Introduction to the Integrated Ombudsman Scheme
Overview of the Financial Market
Examination of the Indian financial market and its regulators.
Deposit schemes and services
Account opening, KYC processes, and banking operations
Principles of sound lending, loans, advances, and asset classification
Grievance redressal mechanisms in banking
Module B – Financial Inclusion and Role of Business Correspondents
Financial Inclusion
Concept and need for financial inclusion
Roles and Responsibilities of Business Correspondents/Facilitators
Financial Education and Financial Counselling
Importance of financial education
Roles of financial counsellors in education and cross-selling
Government Schemes for Promoting Financial Inclusion
Overview of schemes like PMJDY, PMJJBY, and PMSBY
Discussion on the National Strategy for Financial Inclusion
Module C – Technical Skills
Basic Technical Skills
IT skills for financial inclusion using the BC Model
Technology for low-cost financial inclusion
Digital Banking Products
Need and types of digital banking products
Introduction to mobile banking, internet banking, and ATMs
Recent Developments in Digital Banking
Developments like CBDC and account aggregators
Module D – Soft Skills and Behavioural Aspects
Basic Skill Requirements for Business Correspondents
Difference between soft and hard skills
Soft skills for building relationships
Dealing with Various Types of Customers & Strategies for Recovery of Loans
Techniques for dealing with different customer types
Strategies for Effective Loan Recovery