New Delhi [India]April 6 (ANI): India’s Business Correspondent (BC) department will cross ₹A report from BLS E-Services says that by 2025, $147 billion (FY25) charts an impressive 19% compound annual growth rate (CAGR) by 2025.
According to the digital service provider report, growth is driven by the expansion of Pradhan Mantri Jan Dhan Yojana (PMJDY), the in-depth penetration of basic savings bank deposit accounts (BSBDAS) and the increasing popularity of direct welfare transfer (DBT) programs that will provide subsidies and welfare channels for businesses that directly induce benefits.
Business correspondents are bank designated representatives who provide basic banking services in underserved and remote areas.
BCS operates on a commission-based model and is an expansion unit for formal banking institutions that enables last-mile financial services. They earn a fixed fee or percentage of transaction value, depending on the type of service provided.
According to the report, the industry ₹$47 billion in fiscal 2018 ₹100.2 billion in fiscal year 2023 (FY23).
The report added that as rural households adopt formal financial services, transaction volumes have increased, especially in areas where physical bank branches remain scarce.
“With over 1.35 million BC agents operating across India as per PMJDY report, these banking elements are enabling millions of people–especially in rural regions–to access financial services. From cash deposits, withdrawals, and remittances to bill payments, Aadhaar-enabled services, and microfinance lending, BCs have become an essential bridge between formal banking institutions and the underserved population,” said Shikhar Aggarwal, Chairman of BLS Electronic Services.
The report further added that the rise of BSBDA under PMJDY also contributed significantly to the momentum of the industry.
According to the report, the number is expected to exceed $550 million in fiscal 2025.
Most of these accounts are held by rural clients and most transactions such as welfare expenditures, cash withdrawals and remittances under DBT – executed via BCS using Aadhaar authentication.
According to Lokanath Panda, chief operating officer of BLS Electronic Services, the “Company Correspondent (BC) industry is expected to grow from FY22 to FY25 at a CAGR of 19%, from ₹1002.9 billion to ₹147.4 billion. Key growth drivers include the expanding BCS rural outreach, rising BSBDA accounts and deposits, increasing transaction volumes and increasing government DBT programs. ”
The report added that technology integration further strengthens the BC model.
UPI, Aadhaar-enabled payment system (AEP), platforms like Rupay and Imps, and mobile banking applications make financial transactions more secure and accessible even in the most remote corners of the country.
According to NPCI data, more than 520 million AEPS transactions have been processed each month, and business journalists play a key role in this volume. (ANI)
