Published Online:May 2026
Product Name:The IUP Journal of Bank Management
Product Type:Article
Product Code:IJBM030526
DOI:10.71329/IUPJBM/2026.25.2.54-83
Author Name:Sarada Prasan Mohanty, Samir Ranjan Behera and Silu Muduli
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:54-83
This study examines the performance, sustainability, and effectiveness of business correspondents (BCs)—retail agents appointed by banks—in the Indian state of Odisha through a survey-based approach. The study evaluates transaction patterns, income structures and institutional support of BCs, customer preferences and satisfaction levels. The findings reveal significant heterogeneity in BC performance across banks, with BCs affiliated with leading public sector banks outperforming those linked to other public and private sector banks in terms of transaction volumes, income stability, and customer trust. On the demand side, probit model reveals that older customers and those located at a longer distance from bank branches exhibit a strong preference for BCs.
The business correspondents (BCs) model was introduced in the Indian banking system in 2006 by the Reserve Bank of India (RBI) to provide banking services to underserved and rural areas where traditional banking services had a limited presence (RBI, 2006). The primary aim of BCs is to provide access to a wide range of banking products, enabling citizens in underserved regions to enhance their financial skills, access formal financial services, and manage risk through various financial instruments.