BC Sakhi Scheme: Bringing Banking Services to Rural Uttar Pradesh

BC Sakhi Scheme: Bringing Banking Services to Rural Uttar Pradesh

Uttar Pradesh's BC Sakhi scheme places trained women banking correspondents in Gram Panchayats. The model expands access to basic transactions in villages while opening income opportunities for women.

For people living in villages, accessing banking services can mean travelling to a bank branch in a nearby town. The Uttar Pradesh government's BC Sakhi programme aims to bridge this gap by bringing basic banking services closer to rural households while creating livelihood opportunities for women.

Implemented by the Uttar Pradesh State Rural Livelihood Mission (UPSRLM), Department of Rural Development, the programme follows the model of “One Gram Panchayat, One BC Sakhi.” Launched in May 2020, it initially aimed to deploy 58,000 BC Sakhis across the state's Gram Panchayats.

WHAT IS A BC SAKHI?

BC Sakhi stands for Banking Correspondent Sakhi. Under the programme, women, particularly members of Self-Help Groups (SHGs), are trained and certified to work as banking correspondents.

They use digital banking equipment to facilitate transactions and provide doorstep banking services, making it easier for rural residents to access basic financial services, especially in areas with limited access to physical bank branches.

HOW DOES THE PROGRAMME WORK?

The programme aims to establish a banking correspondent at the Gram Panchayat level, allowing residents to access banking services within their local communities.

Selected women undergo training in banking correspondence and must obtain certification from the Indian Institute of Banking & Finance (IIBF). According to UPSRLM, training is conducted through Rural Self Employment Training Institutes (RSETIs) and other designated centres. The RSETI programme includes a six-day course for banking correspondents.

UPSRLM's government orders also lay down provisions for the selection, training, certification and deployment of BC Sakhis across the state.

WHAT FINANCIAL SUPPORT DO BC SAKHIS RECEIVE?

The programme provides 4,000 per month for the first six months to help BC Sakhis establish their banking operations.

Once operational, they can earn commissions on the transactions they facilitate. According to UPSRLM, commission rates generally range from 0.20% to 0.32% of the transaction amount, depending on the applicable arrangements.

The state has also issued a government order providing for 75,000 per BC Sakhi towards equipment and overdraft support.

HOW LARGE IS THE PROGRAMME?

The programme has expanded significantly since its launch in 2020.

According to the Uttar Pradesh government's 2026–27 Budget document, during the financial year 2025–26, 39,880 BC Sakhis across 58,000 Gram Panchayats facilitated financial transactions worth more than 39,000 crore and earned approximately 107 crore in profit.

UPSRLM's BC Sakhi portal reports 50,125 BCs certified by IIBF and 39,890 operational BCs. It also records more than 16.9 crore banking transactions, with a cumulative transaction value exceeding 4.58 lakh crore.

The figures reflect different measures of the programme's reach: the number of women certified, the number operational and the volume of transactions facilitated.

BRINGING BANKING CLOSER TO RURAL HOUSEHOLDS

The BC Sakhi model seeks to reduce the distance and accessibility barriers that can prevent rural residents from using formal banking services. By providing access through trained banking correspondents in their own Gram Panchayats, the programme offers an alternative to travelling to a bank branch for eligible transactions.

For participating women, it also creates an opportunity to earn an income by providing banking services within their communities.

Since its launch in 2020, the programme has combined two objectives: expanding access to banking services in rural Uttar Pradesh and creating livelihood opportunities for women through the banking correspondent model.

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