The experiences during the Covid-19 pandemic highlighted the essential role of female banking correspondents in narrowing this gap and unlocking India’s digital payment potential.
Bank Sakhis Paving the Way
The ‘Bank Sakhi’ model was introduced in 2015-16 in rural India. This concept, started by the National Rural Livelihood Mission (NRLM) and the World Bank, transforms the traditional banking approach in rural areas.
Empowering Women in Banking
Recognizing that over half of the Pradhan Mantri Jan Dhan Yojana (PMJDY) account holders in rural areas are women, the ‘Bank Sakhi’ program was launched. Its goal: helping women navigate the sometimes challenging banking landscape.
Success Stories from Bihar and Odisha
Low-income states like Bihar, Odisha, and Madhya Pradesh have seen remarkable progress thanks to Bank Sakhis. Recent research highlights their pivotal role in building digital payment potential.
Frontliners in Pandemic Relief
Bank Sakhis became frontliners during lockdowns, ensuring women received funds under schemes like the Pradhan Mantri Garib Kalyan Yojana (PMGKY). More than 200 million women account holders benefited from these efforts, thanks to the indispensable services of BC agents.
Challenges and Solutions
To further support Bank Sakhis, solutions like liquidity support, expanded social security benefits, and risk coverage for their trips could be considered. Banks could also increase working capital loans for BCs. However, it’s crucial to address technical glitches in the banking infrastructure to ensure a smooth experience for rural customers.
A Bright Future
Bank Sakhis are recognized for their essential role in promoting digital transactions, as seen in the recent ‘Samarth Campaign.’ With continued support and improvements, they are key players in driving India’s digital financial inclusion, making a brighter future for rural India.
