BCA Remuneration Portal

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Operational Issues

  • Cash Handling - Allowing BCs to handle cash is the biggest challenge. 99% of the financial transactions are in cash, warranting high-cost cash-handling operations and added operational risks
  • Irregular Accounting - Irregularities have been observed in accounting of clients withdrawals and deposits by BCs and as a result there are delays in accounting the banking transactions with the Bank by the BC.
  • Clint Profile - Recipients of BC services are mostly illiterate and unfamiliar with technology rendering them susceptible to misguidance by the BCs.
  • fraud & Misappropriation - Since the BCs' staff operate individually without any line supervision, the risk of fraud and misappropriation is higher.

Operational Issues

  • Inactive No Frills Accounts' - The majority of No Frill Accounts opened by BCs are not operational. In some locations that have achieved 100% financial infusion, the accounts in use have been less than 25%.
  • Model Viability -There's a shortage of funding to BCs for meeting the group promotion costs in the case of SHG-Bank linkage models.
  • BCs losing Money - Initial losses are for many BCs to shut their operations. Business continuity risk in such cases is impacting banks adversely

Regulatory Concerns

  • Interest Capping- Reaching unbanked areas warrants higher delivery costs and the rate cap doesn't allow much room for banks to recover the costs necessary to extend credit to hard-to- reach areas and in small amounts.
  • Distance Criteria - Banks do not always find it easy to get service area waivers from District-level Committees which are necessary to operate in certain areas.
  • Cash Settlement - Current regulations mandate BCs to complete accounting and settle cash with bank branches within 24 hours of transaction.


  • Volume of financial transactions from CBS system and from BCA’s for monthly billing.
  • Screen multiple suspicious transactions in single account
  • Capture non financial activities like Collecting, Preliminary processing of loan applications for example: verification of person’s identity, home-address etc, Self Help Groups to get loans, collect EMIs and recover loan money.
  • Collect data at branch level about activities assigned, status of work completion etc. assigned by branch for billing and keep track of BC’s performance.
  • Track cash in hand for processing cash handling fees.


  • Automated checks and constraints to find irregular transactions
  • Keep checks on funds allocated and BCA agreement renewal, activities status at corporate office level.
  • Automated billing based on agreement rates and transactions done.
  • Generation of office note for payment approval, detailed information about rejected transactions, payment approval and intimation to RO’s about amount approved in every billing cycle.
  • Various MIS reports like region wise FI penetration, funds usage on individual activities etc.,
  • Use BI on historic data to enhance business

Frauds & Checks

  • Cross Verify CBS : Cross verify CBS transactions with BC billing information for total transactions count to find inflated billing.
  • ISAT : Identify self account transactions / related account transactions using known BC account numbers
  • Cash in Hand : Calculate exact cash in hand to arrive at cash handling charges/ avoid misuse of funds
  • Check History : Screen customer accounts transacted history to identify suspicious transactions in particular account by account number
  • Targets : Keep track of targets assigned to achieved ratio to arrive at future agreement and remuneration negotiations
  • Track Performance : Track funds availability, BC’s performance, FI target growth etc.


BCA Remuneration Portal
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