BCRC seeks remuneration review of Bank Mitras

Since Bank Mitras’ remuneration is by way of commissions from banks, and the rates for which were set in 2014 and have not been revised since then, a review has been sought. 
| Photo Credit: VENKATACHALAPATHY C

Business Correspondent Resource Council (BCRC), the industry body representing Bank Mitras, has appealed to the Parliamentary Committee on Finance to review the remuneration of Bank Mitras and sought subsidy on their infrastructure cost.

Recently office bearers of BCRC met Bhartruhari Mahtab, Chairperson, Parliamentary Committee on Finance and made a representation.

Since Bank Mitras’ remuneration is by way of commissions from banks, and the rates for which were set in 2014 and have not been revised since then, a review has been sought. 

“The ATM interoperability charges have been recently revised to ₹19, on similar lines, commission structure for AePS (Aadhaar Enabled Payment System) which is used in rural banking, may also be revised,” the BCRC said in the submission.

It has urged that a remuneration review committee comprising the Department of Financial Services, financial institutions, NPCI & industry bodies may be set up for a review.

Considering Bank Mitras face significant expenses for essential technology upgrades like for laptops, passbook printers and biometric devices, the BCRC has asked the Commission to subsidise supporting infrastructure costs through RBI’s Payments Infrastructure Development Fund (PIDF). 

“The PIDF is designed to subsidise payment infrastructure in underserved areas, direct PIDF subsidies would be crucial to offset these costs,” it said.

Towards systemic strengthening, it has urged for the need for clear accountability guidelines to delineate roles of banks & Bank Mitras in cases of fraud, “so that genuine agents are not penalised for systemic failures.”