‘We Have Not Been Paid After Amalgamation’: J&K Grameen Bank Business Correspondents Allege Exploitation and Neglect

Nearly 250 BCs, who continue to discharge routine duties such as mobilising deposits, recovering NPAs, and spreading awareness of social schemes, say they are now on the verge of financial collapse. The workers accuse the management of exploiting their labour while ignoring their basic livelihood concerns.

Routine Duty Without Wage
Despite a clear directive issued by Jammu and Kashmir Grameen Bank guaranteeing fixed monthly wages to Business Correspondents (BCs) who qualify the IIBF BC certification—₹2,500 for those ensuring minimum 5 PMJDY accounts or 3 APY enrolments or 50 financial transactions, and ₹3,500 for those achieving 10 PMJDY accounts, 5 APY enrolments or 100 financial transactions—the workforce has been left unpaid for months. In direct violation of this official structure, BCs allege that since the amalgamation of RRBs in Jammu and Kashmir, not a single installment of wages has been released, leaving hundreds of families in financial distress.

Image: Official directive on the wage slab of Business Correspondents of Jammu and Kashmir Grameen Bank

As per RBI Master Circular RBI/2012-13/77 dated July 2, 2012, Business Correspondents are mandated to deliver essential banking services on behalf of banks, forming a critical pillar of India’s financial inclusion agenda. Their role—often in remote and underserved areas—ensures last-mile delivery of schemes like PMJDY and APY that the government positions as lifelines for rural households.

Yet, in stark contrast to this mandate, BCs in Jammu and Kashmir Grameen Bank allege that their own livelihoods are being undermined. In July, they staged a strike after three consecutive months without pay, warning that unless immediate corrective action is taken, rural banking operations risk being paralysed.

Image: Business Correspondents on Strike

 

Abandoned After Amalgamation
A member of the Business Correspondents Association of Jammu and Kashmir Grameen Bank, told Kanal, “This is the fourth month in a row we haven’t received our wages despite years of dedicated service. After amalgamation, our hardships have only multiplied. Despite mobilising deposits, recovering NPAs, and spreading awareness about government schemes, we are being sidelined by the management in a ruthless manner.”

He further added, “Hundreds of BC families have waited for years with the hope of being regularised, but instead, the bank has betrayed us.” Another 60-year-old business correspondent echoed the despair, saying, “At an age when I should be retiring with dignity, I am left abandoned by the organisation and forced to face severe financial distress.”

The plight of Business Correspondents in J&K Grameen Bank reflects a deeper, systemic crisis in rural banking. Once hailed as the frontline workforce connecting villages to formal finance, these correspondents now find themselves unpaid, unrecognised, and unheard awaiting urgent and immediate wage redressal.