The BC Sakhi Programme is designed to enhance access to banking services for rural residents in Uttar Pradesh, eliminating the need to travel long distances to reach bank branches in nearby towns. This initiative, launched by the Uttar Pradesh State Rural Livelihood Mission (UPSRLM) under the Department of Rural Development in May 2020, aims to implement a “One Gram Panchayat, One BC Sakhi” model. This strategic approach focuses on deploying one banking correspondent in each Gram Panchayat to cater to local financial needs.

The scheme primarily targets women, particularly those associated with Self-Help Groups (SHGs), training them to act as banking correspondents. These women are equipped with tools and training to facilitate basic banking transactions directly within their communities, significantly improving access to financial services.

Role and Training of BC Sakhis

BC Sakhi, which stands for Banking Correspondent Sakhi, has a crucial role within the programme. Selected women receive comprehensive training to become banking correspondents and are certified through the Indian Institute of Banking & Finance (IIBF). The training is conducted at Rural Self Employment Training Institutes (RSETIs) and other designated facilities, comprising a six-day course tailored to the banking correspondent responsibilities.

Upon successful completion of their training, these women become vital links between rural households and financial service providers. The programme outlines specific guidelines concerning the selection, training, and deployment of BC Sakhis, ensuring clear protocols are followed to maintain the standard of service.

Through this initiative, rural residents can access essential banking services without having to leave their villages, thereby fostering financial inclusion and empowering women in the process.

Financial Incentives and Support for BC Sakhis

The BC Sakhi Programme provides financial support to its participants to encourage the establishment of their banking operations. Initially, each BC Sakhi receives Rs 4,000 per month for the first six months to assist in setting up their services. Once operational, they can earn commissions based on the transactions they facilitate, with rates typically ranging from 0.20 per cent to 0.32 per cent of the transaction amount.

Additionally, the Uttar Pradesh government has issued an order to provide Rs 75,000 to each BC Sakhi for equipment and overdraft support, further enabling them to perform their duties effectively. This financial encouragement not only helps to set up their operations but also ensures that they have the necessary resources to provide services to their communities.

Impact and Reach of the BC Sakhi Programme

Since its launch, the BC Sakhi Programme has seen considerable growth. According to the Uttar Pradesh government’s Budget document for 2026-27, during the financial year 2025-26, a total of 39,880 BC Sakhis facilitated financial transactions exceeding Rs 39,000 crore across 58,000 Gram Panchayats, leading to profits of approximately Rs 107 crore. The UPSRLM’s BC Sakhi portal indicates that 50,125 banking correspondents have been certified by the IIBF, with 39,890 currently operational.

The programme has successfully recorded more than 16.9 crore banking transactions, with the cumulative value of these transactions surpassing Rs 4.58 lakh crore, highlighting the extensive impact of the initiative on rural communities. This data underscore the significance of the BC Sakhi model in transforming the banking landscape in Uttar Pradesh.

Ultimately, the BC Sakhi initiative not only aims to improve access to banking services but also addresses economic challenges by creating sustainable livelihood opportunities for women. This dual focus has been instrumental in advancing financial inclusion in rural areas, setting a precedent for similar initiatives in other regions.

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