Banking agents encourage multiple transactions in bank accounts to earn higher commission

NEW DELHI: Business correspondents(BCs) have found an innovative way to milk the government's financial inclusion agenda by encouraging multiple transactions in bank accounts to earn higher commission. 

At present banks pay up to 0.75% of the transaction value to the banking correspondence company for facilitating a transaction, and on an average the company passes on up to 60% of the amount to the banking correspondence. Banking correspondents share a part of commissionwith the account holders to encourage them into frivolous transactions, an official of a state-run bank told ET. 

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