Schooling financial agents on 'saving money' takes poll position
Despite identity proofs and proper documents, like a letter from a bank or micro-lending firm, to back the legitimacy of their cargo, the cash could be confiscated. The money, once proved genuine, would be released only later, at the intervention of the court or a senior government official.
No one wants to deal with such harassment — neither the financial institutions nor their field agents and ‘business correspondents’ (BC) who collect cash from villagers paying loan EMIs. Sometimes, though, the arrangement may not be all that kosher if dodgy agents choose to carry unaccounted cash or act as couriers of political parties while on official duty.
So, to avoid delays, inconvenience, and a brush with the law, field officials and BCs are being told to put on their best behaviour, besides being “strongly discouraged” to carry cash beyond Rs 50,000 during the weeks of election. While unlike others, these agents are technically allowed to move more money (given the nature of their business), it is difficult to put across the point to a flying squad of cops and election officers who are clueless of the micro-lending business model. “Sometimes, they just don’t listen or understand. That’s because they are unaware of how BCs and MFI people work. So, agents may have to carry less cash, do multiple trips,” said a senior person of a large BC firm which works with multiple banks and lenders.
As part of a ‘standard operating procedure’ of Microfinance Industry Network (MFIN), an organisation that works with regulators and
