Correspondent Banking for ESAF Small Finance Bank

Identifications of customers and due diligence as per "Know Your Customer" norms of Reserve Bank of India
ESAF Cooperative to create awareness about various bank products and originate the leads
Collection of deposits
Savings and other products awareness and education
Receipt and delivery of small value remittance/other payment instruments
Sale of micro insurance/mutual fund/pension/other third party products
Educate the Bank's Customers about all the terms and conditions (including changes, if any) of the Banks' financial services such as interest rates and all other charges as well as the Bank's policies and procedures in a manner and language that is understood by them. Creating awareness about interest rates, terms and conditions of each product, RBI customer protection guidelines issued from time to time etc
Promoting, nurturing and monitoring of JLGs
Disbursal of small value credit
Educating the prospective customer on the products of Principal and helping him / her to select Bank's product/s as per his/her needs. Helping the Member in filling loan application forms and complying with other procedural requirements of the bank for obtaining the loan
Collection and preliminary processing of loan application
Processing and submission of application to banks
Post sanction monitoring
Follow up for recovery
Recovery of principal/collection of interest

INFRA AND INFORMATION TECHNOLOGY INITIATIVES

Customer Service Centres (CSCs) Highlights

Opened 169 CSCs PAN India in FY 2020-21 totalling 221 CSCs.
Through CSCs disbursed more than 244 crores in FY 2020-21 with active loan outstanding of 240 crores spread across 10025 sangams and 94671 customers.
Opened 150th CSC location at Kinwat, Maharashtra
Opened 200th CSC location at Kanichar, Kerala.
Entered Rajasthan geography by opening 3 CSC locations in FY 2020-21.
CSC operations covered 7 states in India; Chhattisgarh, Kerala, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu and New Delhi.

Considering ESAF Co-operative as a whole and as a Business Correspondent of ESAF SFB, the IT initiatives of ESAF Co-operative has put in place state-of-the art measures in strengthening the base of new era banking security, monitoring and centralized control for all Customer Service Centres spread across India. The implementation of new security policies, monitoring and support has brought drastic changes to the BC business. The key highlights of IT initiatives are given below:

216 CSC IT roll-outs including delivery, installation and support.
450+ Email IDs lied under G-Suite and ESAF Bank platform migrated to ESAF Co-operative Zimbra platform
Introduced CCTV centralized monitoring in PAN India CSCs.
Odoo Audit & Supervisory application deployment and support.
Various Software Applications migrated from ESAF Kalathode DC to Oracle.
A Quality Control team with audit and recording facilities were initiated.
IT asset management was centralized.
IT infrastructure implementation for all CSCs with full remote access, utilization report, status monitoring, were put in place.
Central Internet Security (CIS) bench-marked security hardening implemented for Windows.
Implemented CIS bench-marked Data Loss Prevention (DLP) policy for securing the data of ESAF Co-operative across all devices.
Implemented help-desk ticketing tool for service requests with hierarchical approval.

Agency Banking for ESAF Small Finance Bank

In an era of heightened competition, thin profit margins and cost constraints, establishment of conventional bank branches in all locations cannot be a viable proposition. Agency Banking has been introduced in the banking sector with this objective in mind a while ago by most of the front-line Bankers. This is an efficient and effective tool for implementation of Financial Inclusion programme. In this context ESAF SFB has piloted on this cost-effective delivery mechanism to reach out to remote locations and satisfy the financial needs of clientele at an affordable cost. ESCO being the principle BC partner of ESFB, they have suggested to take this new venture ahead as a new stream of business

Agent banking network under BC (Business Correspondent) is an alternative delivery channel for a bank’s financial services and products, aimed at serving the underserved population in a cost effective and efficient method. The delivery channels are serviced by special Agent/Customer Service Centres (CSCs) appointed by the bank in their respective locations (Rather than a teller/ cashier), who provides easy access, limited scale banking and financial services to the underserved population. ESMACO corporate Agent of ESAF Small Finance Bank will appoint ESMACO CSC, Aggregators, Individual Agents, Petty Shop Agents and Vehicle agents as direct Sub-Agent. Only Aggregator shall appoint sub-agents under Tri-partite agreement between ESMACO, Agent and Aggregator.

Agent banking network under BC (business correspondent) means an alternative delivery channel for a bank’s financial services and products, aimed at serving the underserved population in a cost effective and efficient method. The delivery channels are serviced by special agents appointed by the bank in their respective locations (rather than a teller/ cashier), who provides easy access, limited scale banking and financial services to the underserved population.

services

Banking Service (Business Correspondent of ESAF Small Finance Bank)

BUSINESS CORRESPONDENT OF
ESAF SMALL FINANCE BANK