NABARD trains retired bankers under financial inclusion


The strategy planned by NABARD has three layers of trainers, Indian Institute of Banking and Finance at national level, State level Trainers and District Level Trainers

The NABARD (National Bank for Agriculture and Rural Development) has introduced a state-level training programme for retired bankers under financial inclusion today.

A major barrier to financial inclusion is the transaction cost, particularly in delivery of credit. Committee reports submitted to the Indian government call for access to financial services, including credit, to be raised to 50% by 2012 and 100% by 2015.

In 2006, the Reserve Bank of India issued a new set of guidelines allowing banks to employ two categories of intermediaries—business correspondents (BCs) and business facilitators (BFs)—to expand their outreach.

According to the guidelines, while the BCs are permitted to carry out transactions on behalf of the bank as agents, the BFs can refer clients, pursue the clients’ proposal and facilitate the bank to carry out its transactions, but cannot transact on behalf of the bank.

Some challenges being encountered in this model are dormant accounts, community mobilisation, technology integration and training requirements. Keeping this in view the government requested NABARD to prepare a training module and impart training to the BC/BF/BCAs on various issues pertaining to general banking, business model and income generation potential for the BC, mobilization of business for bank, micro pension and micro insurance products, etc.

The strategy planned by NABARD has three layers of trainers, Indian Institute of Banking and Finance (IIBF) at national level, State level Trainers and District Level Trainers.

In Gujarat region (including Daman diu and DNH), 3,548 villages have been identified as unbanked village having population more than 2000. By the end of March 2012, all these villages have been covered by various banks through opening of new branches, ultra small branches and engaging BCs.




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