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A stronger network of women banking agents is critical to deepening last-mile financial inclusion in India and improving access to formal financial services for rural households, according to a report by Women’s World Banking.
The report evaluates the performance of the BC Sakhi programme, launched by the government in 2019 under the 'One Gram Panchayat, One BC Sakhi' mission, which aims to deploy trained women from self-help groups (SHGs) as business correspondents to deliver banking services in rural areas.
While India has significantly expanded bank account ownership through initiatives such as the Pradhan Mantri Jan Dhan Yojana, the report notes that usage among women remains limited.
Although women hold about 55% of Jan Dhan accounts, most accounts are primarily used to receive government benefits rather than for savings, credit, insurance, or digital payments.
The report highlights that the gender of banking agents plays a role in driving usage.
ALSO READ | Nearly 90% of Indians are now part of financial system, but inactivity a major concern: World Bank Global Findex Report
Citing research by the World Bank and Women’s World Banking, it notes that women customers are 7.5 percentage points more likely to transact with female agents, a factor that is particularly relevant in rural areas where social norms can restrict interactions with male agents
The BC Sakhi role also provides an income opportunity for rural women, offering flexible work and an additional source of earnings. However, income sustainability remains a challenge.
According to State Rural Livelihoods Missions, a BC Sakhi needs to conduct at least 250 transactions a month to earn a stable income of over ₹5,000. In Maharashtra, only 13% of BC Sakhis initially met this benchmark, the report said
Key barriers identified include high upfront setup costs, lengthy and complex onboarding processes, limited awareness of the role, and lack of clarity on income potential. Many new agents also take up to a year after onboarding to reach even modest monthly earnings, underscoring the need for sustained support in the early stages
The report points to improvements following targeted interventions. Women’s World Banking’s partnership with the Maharashtra State Rural Livelihoods Mission (UMED-MSRLM) helped reduce entry barriers, expand training, and strengthen mentoring.
As a result, the number of BC Sakhis in the state rose from about 1,260 to more than 7,000 by October 2024, with coverage expanding across all districts.
ALSO READ | Govt moves to stop candidates bouncing between bank jobs
The report evaluates the performance of the BC Sakhi programme, launched by the government in 2019 under the 'One Gram Panchayat, One BC Sakhi' mission, which aims to deploy trained women from self-help groups (SHGs) as business correspondents to deliver banking services in rural areas.
While India has significantly expanded bank account ownership through initiatives such as the Pradhan Mantri Jan Dhan Yojana, the report notes that usage among women remains limited.
Although women hold about 55% of Jan Dhan accounts, most accounts are primarily used to receive government benefits rather than for savings, credit, insurance, or digital payments.
The report highlights that the gender of banking agents plays a role in driving usage.
ALSO READ | Nearly 90% of Indians are now part of financial system, but inactivity a major concern: World Bank Global Findex Report
Citing research by the World Bank and Women’s World Banking, it notes that women customers are 7.5 percentage points more likely to transact with female agents, a factor that is particularly relevant in rural areas where social norms can restrict interactions with male agents
The BC Sakhi role also provides an income opportunity for rural women, offering flexible work and an additional source of earnings. However, income sustainability remains a challenge.
According to State Rural Livelihoods Missions, a BC Sakhi needs to conduct at least 250 transactions a month to earn a stable income of over ₹5,000. In Maharashtra, only 13% of BC Sakhis initially met this benchmark, the report said
Key barriers identified include high upfront setup costs, lengthy and complex onboarding processes, limited awareness of the role, and lack of clarity on income potential. Many new agents also take up to a year after onboarding to reach even modest monthly earnings, underscoring the need for sustained support in the early stages
The report points to improvements following targeted interventions. Women’s World Banking’s partnership with the Maharashtra State Rural Livelihoods Mission (UMED-MSRLM) helped reduce entry barriers, expand training, and strengthen mentoring.
As a result, the number of BC Sakhis in the state rose from about 1,260 to more than 7,000 by October 2024, with coverage expanding across all districts.
ALSO READ | Govt moves to stop candidates bouncing between bank jobs
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