The State Bank of India has built strong partnerships at the front end and resilient institutional infrastructure at the back end to achieve the next phase of bank's business correspondent out reach of universal coverage between 2011 to 2015. SBI is also sufficiently geared to to scale up the efforts for financial inclusion throughout the country. It plans to reach all the financially excluded villages where there is absence of banking facility either through a branch or a BC in next five years. We have 16-17000 BCs as of now which are being expanded every month .
The bank has also deployed various technologies and has experienced their pros and cons. Similarly, the BCs represent a variety of institutions and individuals. The experience has been quite useful for learning about what needs to be done.We have invested Rs 100 crore in relevant technologies which will be doubled in next two years ..
The key challenge at this stage of the model's evolution is to find a sustainable model, which is profitable for all the stakeholders involved, while being useful for the clients. Many BCs and customer service points (CSPs) are finding it difficult to sustain themselves and this is direct impediment to scaling up the model. At scale all losses will get magnified. With this challenge in view the bank has launched a nationwide project to improve the viability of this model and scale it nationally.
The bank is working on a comprehensive BC model, addressing all the challenges it has faced thus far, focusing on the effectiveness and viability of the BC and the bank.The model is being developed in partnership with agencies like IFMR Finance Foundation(IFF), High Mark Credit Information Services and Rural Technology and Business Incubator(RTBI) of IIT -Chennai Every Village in India will have an SBI CSP
This effort plans to have a CSP in every financially excluded village, so that the service is accessible to every customer. The focus will be on a ``kirana' shop to play the role of CSP . Retailers are best suited for providing these services, and they don't need to fully depend on this channel for viability because they have other sources of income as well. This will effectively mean that a CSP will be available at a walking distance from all clients and thuis CSP will be available for transactions most of the day. The CSPs and BCs would be