BCRC seeks remuneration review of Bank Mitras
Business Correspondent Resource Council (BCRC), the industry body representing Bank Mitras, has appealed to the Parliamentary Committee on Finance to review the remuneration of Bank Mitras and sought subsidy on their infrastructure cost.
Recently office bearers of BCRC met Bhartruhari Mahtab, Chairperson, Parliamentary Committee on Finance and made a representation.
Since Bank Mitras' remuneration is by way of commissions from banks, and the rates for which were set in 2014 and have not been revised since then, a review has been sought.
'The ATM interoperability charges have been recently revised to ₹19, on similar lines, commission structure for AePS (Aadhaar Enabled Payment System) which is used in rural banking, may also be revised,' the BCRC said in the submission.
It has urged that a remuneration review committee comprising the Department of Financial Services, financial institutions, NPCI & industry bodies may be set up for a review.
Considering Bank Mitras face significant expenses for essential technology upgrades like for laptops, passbook printers and biometric devices, the BCRC has asked the Commission to subsidise supporting infrastructure costs through RBI's Payments Infrastructure Development Fund (PIDF).
'The PIDF is designed to subsidise payment infrastructure in underserved areas, direct PIDF subsidies would be crucial to offset these costs,' it said.
Towards systemic strengthening, it has urged for the need for clear accountability guidelines to delineate roles of banks & Bank Mitras in cases of fraud, 'so that genuine agents are not penalised for systemic failures.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
4 days ago
- Mint
Parliamentary panel to recommend fresh set of changes to insolvency code
New Delhi: India's insolvency regime is set for further reform as the Parliamentary Standing Committee on Finance will likely recommend a set of measures aimed at speeding up decisions and boosting creditor recoveries under the Insolvency and Bankruptcy Code (IBC), two people familiar with the matter said. The suggestions will follow the committee's ongoing review of the Code. The review comes amid growing demands for speeding up debt resolution and improving recovery rates, and legal complexities exposed by the recent Supreme Court ruling in the Bhushan Power & Steel resolution case. Read this | House panel to scan IBC functioning after SC's Bhushan order The House panel, led by lawmaker Bhartruhari Mahtab, met last week with officials from the ministry of corporate affairs and the Insolvency and Bankruptcy Board of India (IBBI), along with executives of three state-run banks, to assess the performance of the Code since its rollout in 2016. In the meeting, officials told the panel that the IBC has become the principal recovery mechanism for banks and financial institutions, accounting for nearly half of all debt recoveries, and has also helped reduce borrowing costs for distressed companies, one of the persons quoted above said. However, the process continues to suffer from persistent delays and subpar recovery rates in many cases, often due to protracted litigation among stakeholders. So far, creditors have realised ₹3.89 trillion from approved debt resolution plans and ₹9,330 crore from liquidated companies, according to data from the IBBI. Another ₹1 trillion was realised from cases settled directly between creditors and companies. The committee is expected to meet more stakeholders, including insolvency professionals and industry representatives, before finalising its report, one of the people cited above said. Among the concerns raised in last week's meetings were the challenges faced by homebuyers in ongoing insolvency cases, the person added. Queries emailed on Monday to the ministry, the Parliamentary committee and IBBI seeking comments for the story remained unanswered at the time of publication. Experts say that resolving these bottlenecks will require strengthening the judicial infrastructure supporting IBC. 'To improve the IBC process, we need faster court decisions. This can be done by increasing the number of judges, reducing adjournments, and using better technology for case tracking. The process should stick to strict timelines to avoid long delays that reduce the value of assets," said Ritesh Kumar Adatiya, director, NPV Insolvency Professionals Pvt. Ltd. Court ruling questions IBC operations The Supreme Court last month rejected the five-year-old resolution plan for Bhushan Power & Steel Ltd (BPSL), citing jurisdictional issues and violations of IBC provisions. The ₹19,700 crore successful bid by JSW Steel Ltd was overturned, and the court ordered the liquidation of the company. It later granted JSW time to file a review petition. In a landmark ruling, the apex court held that bankruptcy tribunals do not have powers of judicial review over statutory authorities such as the Enforcement Directorate (ED). It also struck down an earlier National Company Law Appellate Tribunal (NCLAT) order that had insulated BPSL's assets from ED attachment, saying the tribunal had exceeded its jurisdiction. Read this | Mint Explainer: The Supreme Court's Bhushan Power ruling that has stunned India's insolvency ecosystem That decision, along with other recent Supreme Court rulings on the priority of statutory dues and the Competition Commission of India's (CCI) clearance requirements for certain resolution plans, has introduced new legal complexities not originally anticipated in the Code. The Ministry of Corporate Affairs is now working on a draft amendment bill to clarify some of these ambiguities and streamline the process. The bill is expected to be tabled in Parliament later this year. Despite the recent judicial setbacks, the Code has a strong foundation and remains robust in ensuring debt resolution, though some glitches persist in areas where the law remains unclear, said the second person cited earlier. NPV Insolvency Professionals' Adatiya added that outcomes under IBC can improve significantly if resolution plans are filed earlier and by credible applicants. 'Proper background checks, faster approvals, and fewer legal hurdles after plans are approved can go a long way in protecting lenders' interests," he said. Also read | A series of court orders changed bankruptcy rules. Now, the govt is amending the law 'IBC has helped change the credit culture in India," he added. 'But to improve outcomes, we need quicker resolution, stronger checks on resolution applicants, and better coordination between regulators, courts, and professionals. This will boost confidence and improve returns for creditors."
&w=3840&q=100)
Business Standard
6 days ago
- Business Standard
UPI numbers hit all-time high in May, cross Rs 25 trn for the first time
Transactions on the Unified Payments Interface (UPI) touched an all-time high of 18.68 billion in volume and ₹25.14 trillion in value in May, the National Payments Corporation of India (NPCI) data revealed on Sunday. The May numbers were up 4 per cent in volume and 5 per cent in value, compared to 17.89 billion and ₹23.95 trillion, respectively in April. The transaction volume also reflects a 33 per cent year-on-year (Y-o-Y) jump, while the value was up 23 per cent. The previous record numbers were in March 2025, when the digital payment system clocked 18.3 billion in volume and ₹24.77 trillion in value. The number of daily transactions too increased from 596 million in April to 602 million in May this year, leading to a rise in value from Rs 79,831 crore in April to Rs 81,106 crore in May. There were 464 million Immediate Payment Service (IMPS) transactions in May, up 3 per cent from 449 million in April. IMPS transactions also climbed 3 per cent in value terms from ₹6.22 trillion in April to ₹6.41 trillion in May. This was seen at 462 million in volume and ₹6.67 trillion in value in March. The numbers in May were down by 17 per cent in volume and up by 6 per cent in value compared to the same period in 2024. The number of daily transactions dipped from 14.98 million to 14.96 million between April and May this year, leading to a drop in daily value from ₹20,722 crore to ₹20,673 crore. On the other hand, the number of FASTag transactions increased by 5 per cent to 404 million in volume during the month under review versus 383 million in April. The value also zoomed 4 per cent to ₹7,087 crore, compared to ₹6,801 crore in April. In March, this was seen at 379 million and Rs 6,800 crore, respectively. The May FASTag numbers were 16 per cent up in volume and 20 per cent in value versus the same month in 2024. The number of daily transactions increased from 12.75 million to 13.05 million, raising the value to around ₹229 crore from ₹227 crore during the same period. During the month under review, the Aadhaar Enabled Payment System (AePS) also jumped 11 per cent to 105 million transactions from 95 million in April. The value of transactions during May this year was ₹28,703 crore, up 8 per cent compared to ₹26,618 crore in April. The number of daily transactions was 3.37 million in volume and ₹926 crore in value, up from 3.18 million and ₹887 crore, respectively in April. AePS saw a 16 per cent increase in volume and 23 per cent in value compared to May 2024.
&w=3840&q=100)
Business Standard
29-05-2025
- Business Standard
Parliamentary panel flags 'ambiguities' in IBC; govt mulls amendments
A parliamentary committee on Thursday flagged 'ambiguities' in the Insolvency and Bankruptcy Code (IBC), with sources stating that the government appears to be in the process of considering amendments to address concerns, according to a report in Press Trust of India. Sources said the recent Supreme Court (SC) judgement rescinding JSW Steel's resolution plan for Bhushan Power and Steel Ltd (BPSL) was also brought up in the deliberations of the Standing Committee on Finance led by Bharatiya Janata Party (BJP) MP Bhartruhari Mahtab, an order which has led to a debate over the efficiency of the insolvency mechanism in place. On Monday, the apex court put a status quo on BPSL's liquidation based on a plea by JSW Steel, as the company argued that the liquidation would be damaging to it, its lenders, and its employees. Corporate affairs secretaries and representatives of multiple banks appeared before the committee on Thursday while its members discussed the agenda of the 'review of working of the Insolvency and Bankruptcy Code and Emerging Issues.' Sources said certain committee members flagged inadequacies, such as delays in the resolution process. It was noted that the preceding panel, headed by Jayant Sinha, had also highlighted certain gaps in the law and recommended changes. The government had accommodated some of the said suggestions in an initial amendment of the law. "We believe that the government is very much in the thick of things as far as addressing the issues related to the IBC are concerned. We got the view that there may be more amendments in the offing," a source said. The source added that the IBC has, on many occasions, served the company and its creditors in distress. "Any law is a dynamic process. It evolves with time," said the source, adding that the IBC, enacted in 2016, has proved helpful in various cases. What is the Insolvency and Bankruptcy Code? Enacted in 2016, the IBC lays down a basic framework for the insolvency and bankruptcy-related resolution of individuals, partnership firms, and corporate entities. The aim of this code is to revive businesses undergoing financial distress in a timely manner, aiding creditors to recover their dues. The central goal of the IBC is the streamlining of the insolvency process, protection of interests of stakeholders involved, and ultimately enriching the efficiency of the Indian economy as a whole.
