Financial inclusion has been one of the most significant socio-economic transformations witnessed in India over the last two decades. There was a time when banking services were largely confined to cities and towns, while millions of people living in rural and remote areas remained outside the formal financial system. Opening a bank account, depositing savings, obtaining credit, or receiving government benefits was often a difficult and time-consuming process for ordinary citizens.
Today, the situation has changed dramatically. Hundreds of millions of Indians have been brought within the ambit of formal banking. Initiatives such as Jan Dhan Yojana, Direct Benefit Transfer (DBT), Aadhaar-enabled payment systems, social security schemes, and digital banking have contributed significantly to this transformation. However, behind this success story stands a vast workforce that rarely receives the recognition it deserves, the Banking Correspondents (BCs).
If financial inclusion is the destination, Banking Correspondents are the bridge that has connected millions of citizens to the formal banking system. They are the real architects of India’s financial inclusion revolution.
The latest Financial Inclusion data as of December 2025 clearly demonstrates the importance of the BC network. While banks operate 1,70,189 branches across the country, the number of Fixed Point BC outlets has reached 11,75,250, nearly seven times the branch network. More importantly, 7,56,840 of these outlets, or about 64 percent, are located in rural areas. These figures reveal an important reality. The expansion of banking in India has not been driven primarily through physical branches. Instead, it has been driven through Banking Correspondents who have carried banking services to villages, remote habitations, tribal regions, and underserved communities where establishing a full-fledged branch may not be commercially viable.
For millions of rural citizens, the Banking Correspondent is not merely an agent of a bank; he or she is the bank itself. Whether it is withdrawing cash, depositing savings, transferring funds, receiving pension payments, or accessing government welfare benefits, the BC serves as the primary interface between the banking system and the people.
The contribution of Banking Correspondents becomes even more evident when one examines the growth of Basic Savings Bank Deposit Accounts (BSBDAs). The number of such accounts has reached 73.04 crore. Significantly, women account holders constitute more than 40.24 crore of these accounts. Deposits in BSBDAs have crossed ā¹3.45 lakh crore, out of which ā¹2.06 lakh crore belongs to women account holders.Ā These numbers tell a powerful story. Financial inclusion is not merely about opening bank accounts; it is about empowering people to save, transact, invest, and participate in the formal economy. It is about giving women greater financial autonomy and enabling vulnerable sections of society to access financial services that were previously beyond their reach.
Banking Correspondents have played a pivotal role in this process. They have gone from village to village, helping people open accounts, understand banking products, access digital services, and develop trust in formal financial institutions.
The scale of transactions handled by Banking Correspondents is perhaps the strongest evidence of their growing significance. During the financial year, BCs facilitated 39,413 lakh transactions, equivalent to approximately 394 crore transactions.
The value of these transactions amounted to an astounding ā¹11.90 lakh crore.Ā Female Banking Correspondents alone handled transactions worth ā¹2.31 lakh crore.Ā These are not insignificant figures. They are comparable to the business volumes handled by many large banking networks. Every transaction processed through a BC represents a citizen participating in the formal financial system. These transactions include cash deposits, withdrawals, remittances, Aadhaar-enabled payments, pension disbursements, social security benefits, scholarship payments, MGNREGA wages, and Direct Benefit Transfers. In many villages, Banking Correspondents have become the backbone of welfare delivery systems.
Without them, the implementation of several government programmes would become significantly more difficult, costly, and inefficient. The importance of Banking Correspondents extends beyond banking. They are contributing directly to economic development. Farmers receive banking services closer to their villages. Pensioners no longer need to travel long distances to access their funds. Women gain greater control over household finances. Self-help groups and small entrepreneurs gain access to formal financial channels.
In a broader sense, BCs are helping integrate rural India into the mainstream economy. Financial inclusion is often viewed as a banking objective. In reality, it is a developmental objective. Greater access to banking leads to higher savings, improved financial literacy, reduced dependence on informal moneylenders, better delivery of welfare schemes, and greater economic participation.
Every village connected to the banking network becomes more resilient and economically empowered. Yet, despite their enormous contribution, the condition of Banking Correspondents remains deeply paradoxical. While they handle transactions worth nearly ā¹12 lakh crore annually and serve as the face of banking forĀ millions of citizens, many BCs themselves continue to work under precarious conditions.
Ā Most Banking Correspondents do not enjoy assured monthly incomes. Their earnings are largely commission-based and often inadequate. In many cases, commissions are delayed. Operational costs such as internet connectivity, electricity, device maintenance, rent, transportation, and other expenses are borne by the BCs themselves.
Even more concerning is the absence of social security. Most BCs do not have access to comprehensive insurance, pension benefits, healthcare protection, or welfare schemes. Their livelihoods remain uncertain despite their critical contribution to the financial system.
Job insecurity is another major concern. In many cases, BCs can be disengaged without adequate safeguards or transparent procedures. Furthermore, there is virtually no structured career progression framework for individuals who have dedicated years to serving the banking system. This situation raises an important question: Can a model that operates through more than 11 lakh service points and handles nearly ā¹12 lakh crore worth of transactions remain sustainable if the people delivering these services are themselves financially insecure?Ā The answer is obvious.
If India is serious about deepening financial inclusion and strengthening rural banking, the welfare and sustainability of the Banking Correspondent ecosystem must become a policy priority. There is a compelling case for introducing assured minimum monthly remuneration, higher transaction-based commissions, comprehensive social security benefits including insurance and pension coverage, reimbursement of operational expenses, regular training and skill development programmes, and clear career progression opportunities within the banking ecosystem. Such measures should not be viewed as welfare concessions. They should be viewed as investments in the stability and effectiveness of India’s financial inclusion architecture.
The success of financial inclusion has often been celebrated through statistics. However, behind every account opened, every pension delivered, every subsidy transferred, and every transaction completed stands a Banking Correspondent working at the grassroots level. They are not merely agents of banks. They are ambassadors of financial inclusion, facilitators of economic empowerment, and partners in national development.
Recognising their contribution and ensuring their economic security is not only a matter of justice, it is a prerequisite for building a stronger, more inclusive, and more sustainable financial system. A strong Banking Correspondent network means stronger financial inclusion, stronger rural economies, and ultimately, a stronger India.
Devidas Tuljapurkar is the Chairman of the Banking Education Training & Research Academy
