Lucknow, 11 Oct (HS): The BC Sakhi Scheme in Uttar Pradesh

functions under the One Gram Panchayat, One BC Sakhi approach to

provide banking services at home to rural populations. The program

has been instrumental in empowering rural women to become self-sufficient. BC Sakhis have become reliable

individuals in their communities, acting

as the main connection between villagers and financial institutions. The project is regarded as a powerful

example of women's empowerment while guaranteeing

efficient banking services at the

grassroots level in Uttar Pradesh.

For villagers, obtaining

banking services often requires traveling to a bank location

in a neighboring town. TheBC Sakhi programme of the Uttar

Pradesh government seeks to close this gap by providing basic banking services to rural homes and

generating job opportunities for women. Executed by the Uttar Pradesh State Rural

Livelihood Mission (UPSRLM), Department of Rural Development, the initiative adheres to the One Gram

Panchayat, One BC Sakhi model. In May 2020, it was

initially intended to launch 58,000 BC Sakhis throughout

the Gram Panchayats of the state.

BC Sakhi represents Banking Correspondent Sakhi. Through the initiative,

women, especially those in Self-Help

Groups (SHGs), receive training and certification

to serve as banking correspondents. They

utilize digital banking tools to enable transactions and offer banking

services at home, simplifying access to essential

financial services for rural individuals, particularly in regions with few physical bank branches.

The initiative seeks

to create a banking correspondent at

the Gram Panchayat level, enabling local

residents to utilize banking services in

their communities. Chosen women receive training in banking correspondence and are

required to attain certification from the Indian Institute of Banking & Finance

(IIBF). As per UPSRLM, training is provided via Rural Self Employment Training Institutes

(RSETIs) and other specified centers.

The RSETI initiative offers a

six-day training program for banking correspondents. The government orders from UPSRLM also establish

guidelines for the selection, training,

certification, and deployment of BC Sakhis throughout the state.

WHAT FINANCIAL ASSISTANCE DO BC SAKHIS GET? The initiative offers

4,000 each month for the initial six months to assist

BC Sakhis in setting up their banking functions.

Once in operation, they have the ability to

earn commissions from the transactions

they help facilitate. As per UPSRLM, commission fees typically vary between

0.20% and 0.32% of the transaction total, based on the relevant

agreements. The state has also released a government directive allocating 75,000 per BC Sakhi for equipment and overdraft assistance.

WHAT IS THE SIZE OF

THE PROGRAM? The program has grown considerably since its initiation in 2020. As per the Uttar Pradesh government's budget document for 2026–27, in the fiscal year 2025–26, 39,880 BC Sakhis in 58,000

Gram Panchayats enabled financial transactions exceeding Rs. 39,000 crore and generated around Rs. 107

crore in profit. The BC Sakhi

portal of UPSRLM shows that 50,125 BCs have

been certified by IIBF and that there are

39,890 BCs currently operational. It additionally

logs over 16.9

crore banking transactions, with a total

transaction value surpassing 4.58 lakh

crore. The numbers indicate

various indicators of the program's impact: the count

of certified women, the count operational, and the total transactions enabled.

CLOSING THE GAP

BETWEEN RURAL HOUSEHOLDS AND

BANKING: The BC Sakhi model aims

to diminish the barriers of distance and accessibility that may hinder rural inhabitants from utilizing formal banking services. The

initiative presents an option to visit a bank

branch for eligible transactions by granting

access via trained banking

correspondents in their local Gram Panchayats. It also allows

participating women to generate income

by offering banking

services in their

communities. Since its launch in 2020, the initiative has pursued two goals: increasing access to banking services

in rural Uttar Pradesh and generating livelihood opportunities for women via the banking correspondent model.

Hindusthan Samachar / Abhishek Awasthi