State Bank of India has today signed a Service Level Agreement with Paisalo Digital Limited National Corporate Business Correspondent of the Bank for promoting financial inclusion by providing banking services through kiosks.
Towards this objective of promoting financial inclusion and increasing the outreach, Paisalo Digital shall extend its services and reach to the vast under serviced segments of the market, specially in semi urban and rural parts of India.
As a national business correspondent for State Bank of India, PaisaLo will focus on building greater synergies and a more aggressive roll out of their already up and running fully digital small loan business under SBI-Paisalo Loan Co-origination.
Santanu Agarwal, Deputy CEO, Paisalo Digital, shares, “Paisalo sees huge opportunity and is well positioned to capitalise on the huge Rs 8 lakh crore market of small ticket loans for our 365 million of under banked and under serviced population. This engagement will besides promoting greater synergies and enabling a faster rollout of our joint digital lending products also help increase Paisalo’s fee and service income in future. Together with our Fully Digital SBI-Paisalo Loan Co-Origination Scheme this is a big step forward in Paisalo’s goal of creating the most competitive seamless banking solution for India's Bottom of Pyramid Population.”
At 11.42 AM, Paisalo shares went up 1.11 percent or Rs 9.85 to Rs 898.75.
Business Correspondents (BCs) are retail agents engaged by banks for providing banking services at various locations. BCs enable a bank to expand its outreach and offer range of banking services at low cost, as against setting up a brick and mortar branch which may not be viable in all cases. BCs, thus, are an integral part of a business strategy for achieving greater financial inclusion.
BCs are permitted to perform a variety of banking activities via its CSP outlets through use of Information and Communication Technology, through kiosk portal of the Bank. The financial services offered by BCs range from Savings Bank Deposits, Fixed Deposit, Recurring Deposit, Remittances, Micro Pension, Micro Insurance etc.; or any other product as approved by RBI/ DFS/ Bank.
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