Trichy Bank Business Correspondents Stage Protest Over Halted Commission Payments
In a significant demonstration of distress, dozens of bank business correspondents in Trichy submitted formal petitions at the district collectorate on Friday. Their primary demand was the immediate resumption of service commission payments for distributing assistance under various government schemes to beneficiaries. The correspondents, who serve as crucial intermediaries between banks and the public, expressed deep frustration over the financial hardship caused by the discontinuation of these commissions.
Livelihood Crisis for Banking Agents
The business correspondents have highlighted that the halting of their commission payments has severely impacted their livelihoods, pushing many into economic uncertainty. These agents are appointed by banks specifically to deliver government welfare benefits to customers, playing a vital role in the financial inclusion ecosystem. In Trichy district alone, approximately 800 individuals work as business correspondents for various banks, relying on this income to support themselves and their families.
Previously, these correspondents earned a commission directly from the banks for their services. However, last year, the government discontinued the commission funding that was allocated to the banks, effectively cutting off this revenue stream. This policy change has left the correspondents in a precarious position, as they had depended on the government commission that was channelled through the banks.
Voices from the Ground: A Plea for Dignity and Payment
R Ilayaraja, a 44-year-old business correspondent, articulated the collective anguish of the group. "The stoppage of the commission has harmed both our livelihood and our social dignity. Yet, we continue to perform our duties without receiving any payment," he stated. This sentiment underscores the dual burden faced by the correspondents: not only are they struggling financially, but they also feel a loss of respect and recognition for their essential work in facilitating government aid.
The correspondents' protest is not just about money; it is a call for acknowledgment of their contributions to public welfare. They argue that without fair compensation, their ability to serve beneficiaries effectively could be compromised, potentially disrupting the delivery of critical government assistance to those in need.
Broader Implications for Financial Services and Governance
This issue raises important questions about the sustainability of the business correspondent model in India's banking sector. As key players in extending financial services to remote and underserved areas, these agents are instrumental in implementing government schemes. The discontinuation of commission payments threatens to undermine this network, which could have ripple effects on financial inclusion and social welfare programs.
The petitioners are urging the district authorities and relevant government bodies to reconsider the decision and reinstate the commission funding. They emphasize that resuming these payments is crucial not only for their personal well-being but also for maintaining the efficiency and integrity of public service delivery. The outcome of this protest could set a precedent for how similar cases are handled across the country, impacting thousands of business correspondents nationwide.
