As per Bank’s strategy to reach out to masses, Shivalik Bank has onboarded Corporate Business Correspondent (BC) partners to offer the banking products Bank is partnering with multiple BC partners to reach out to customers across geographies and diversified product segments. Bank has onboarded different BC partners as per prevailing regulatory guidelines and has leveraged their outreach in newer geographies with cost effective delivery mechanism
The following Business Correspondent models are envisaged:
Eligibility Criterion for the appointment of Business Correspondents and Business Facilitators
The bank can engage with the following individuals and/or entities as BC/BF:
Selection Criterion and Procedure for Appointing BCs/BFs
Scope of Activities
The activities to be undertaken by the BCs/BFs would be within the normal course of banking business. BCs can be permitted to carry out regular transactions for customers on behalf of the Bank The scope of activities of the BC / BF may include the following:
Interoperability of BCs/BFs
Bank will permit interoperability at the retail outlets or sub-agents of BCs (i.e., at the point of customer interface) subject to the following conditions:
Distance Criterion for setting up BC/BF
While BC may collect the proof of identity/proof of address documents from the potential customers for on boarding from the field, the responsibility for ensuring KYC and AML compliance will rest with the Bank as released from time to time followed on customers/accounts sourced through BC channel. Shivalik Bank will adopt a flexible yet compliant approach within the parameters of guidelines issued on KYC from time to time. These approaches are communicated by compliance team to various businesses from time to time.
While drawing up agreements with BCs, bank will adhere to instructions contained in the guidelines issued by RBI on managing risks and code of conduct in outsourcing of financial services. The terms and conditions that governing the contract between the Bank and service provider, should be carefully defined in written agreements, and must be vetted by bank's legal counsel/Team on their legal effect and enforceability. Such agreement should address the risks and risk mitigation strategies. The agreement should be sufficiently flexible to allow the bank to retain an appropriate level of control over the outsourcing and the right to intervene with appropriate measures to meet legal and regulatory obligations.
The contract / agreement must incorporate the following:
Bank shall pay reasonable commission/fee to the BC / BF. The rate and quantum of the commission / fee may be reviewed periodically as per the agreement. Bank will aim to devise appropriate commission / fee structure for corporate and individual BCs basis the following parameters:
Monitoring and Risk Management
As Bank runs the reputational risk while managing the BC, Head Office and branches will closely watch and monitor the activities of BC engaged by them. Bank will ensure the following: These are broad parameters basis which BC performance will be defined.
Customer satisfaction is of supreme importance while rendering Banking Services. The Bank would take all steps to protect the interests of the customers and to ensure fair, transparent, and prompt delivery of services through BC/BF Channel and all the services rendered by BCs and BFs shall be covered under customer service policy of the Bank.
Grievance Redressal Mechanism
The banks should constitute Grievance Redressal Mechanism within the bank for redressing complaints about services rendered by the BCs and give wide publicity about it through electronic and print media and should put in Grievance Redressal mechanism and details in BC outlets. The name and contact number of designated Grievance Redressal Officer of the bank should be made known and widely publicized. The designated officer should ensure that genuine grievances of customers are redressed promptly. The grievance redressal procedure of the bank and the time frame fixed for responding to the complaints should be placed on the bank's website. If a complainant does not get satisfactory response from the bank within 30 days from the date of his lodging the compliant, he will have the option to approach the Office of the Banking Ombudsman concerned for redressal of his grievance/s
Exit /Termination of BC
Policy Review and Updates
This Board approved policy will be reviewed as and when required or at least on an annual basis for incorporating changes in appointing BCs and BFs and regulatory updates, if any.
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