‘We Bring Business, But No Pay’, Jammu and Kashmir Grameen Bank Business Correspondents Protest Over Unpaid Wages

Image: Members of Business Correspondents Association of Jammu and Kashmir Grameen Bank on strike

‘We Bring Deposits, We Recover Loans — But We Get No Pay’

BCs play a crucial role in banking operations across remote regions, especially in areas with no physical bank branches or ATMs. Equipped with micro-ATM devices, BCs facilitate deposits, withdrawals, Aadhaar-enabled services, and social security enrolments.

President of the Business Correspondents Association of Jammu and Kashmir Grameen Bank, Mohammed Iqbal, told Kanal, “This is the third month we haven’t received our wages. All of us are on strike now. Despite our relentless work—mobilising deposits, recovering NPAs, spreading awareness about social schemes—we’re being sidelined by the management.” 

Iqbal further added, “Hundreds of BC families have waited for years hoping to be regularised, but instead, the bank has handed us betrayal.”

Violation of Wage Policy

As per Jammu and Kashmir Grameen Bank’s latest policy guidelines, the fixed monthly wage of ₹2,500 is now conditional upon achieving a minimum of 20 Pradhan Mantri Jan Dhan Yojana (PMJDY) account openings and 5 Atal Pension Yojana (APY) enrolments per month. Earlier, this wage was paid unconditionally to all active BCs.

“The very people entrusted with banking the unbanked are now excluded from financial protection,” said a BC from Kupwara district in Kashmir, who requested anonymity. “This clause is arbitrary and unworkable in areas where saturation of schemes has already occurred.”

As per RBI Master Circular RBI/2012-13/77 dated July 2, 2012, Business Correspondents are authorised to provide essential banking services on behalf of banks as part of the broader financial inclusion mandate.

Image: Responsibilities of Business Correspondents as per RBI norms

Financial Inclusion Work, But No Financial Security

The RBI defines financial inclusion as banking the unbanked, not just executing social security schemes. BCs argue that making their wages conditional on targets like APY or PMJDY defeats the broader purpose. “Our work goes far beyond schemes—we identify borrowers, assist in loan recoveries, verify loan applications, and even serve as the bridge between local communities and bank staff. Yet, we remain isolated from the system we help sustain,” said another protesting BC. 

BCs Demand Wage Hike and Target Relaxation

In a formal communication sent to the bank on June 20, 2025, the Business Correspondents Association of Jammu and Kashmir Grameen Bank outlined their primary demands for urgent redressal.

Image: Demands of Business Correspondents Association of Jammu and Kashmir Grameen Bank

The association noted that despite years of dedicated grassroot service, the BCs’ interests were repeatedly sidelined during policy revisions and urged the bank to consider their long-pending demands.

Bank Policy Acknowledges BCs as Market Drivers

Interestingly, the bank’s own policy highlights the strategic importance of BCs. It states that the bank aims to “increase our market share through leveraging the Business Correspondent model of banking in locations where operating a conventional branch is unviable.” The policy also acknowledges the role of BCs in supporting branches and enhancing customer service in rural regions.

The BC Association has demanded immediate release of pending wages, removal of arbitrary conditions from the wage policy, and steps toward regularising long-serving BCs. They have also appealed the bank management to recognise the indispensable role BCs play in rural financial systems. Unless these demands are met, the association has warned of continued strike actions across all affected districts.