Bank correspondents in Tiruchi seek restoration of commission, wages

Members of the Bank Business Correspondents Association submitted a petition to the District Collector in Tiruchi on Friday seeking the restoration of commission payments and basic wages, stating that hundreds of correspondents have been left without income for several months.

Association representative R. Ilayaraja said that over 800 business correspondents in the district serve as a vital bridge between banks and the public, playing a key role in delivering government welfare schemes directly to beneficiaries. He said correspondents facilitate doorstep banking services, visit colleges to open bank accounts, and help enrol beneficiaries under schemes such as old age pension, assistance for persons with disabilities, Kalaignar Magalir Urimai Thogai, Pudhumai Penn, and Tamil Pudhalvan.

However, he said that until 2025, the government provided a commission of ₹30 per transaction to banks, of which ₹10 was passed on to business correspondents. After the State government directed banks to carry out the services directly, several banks reportedly discontinued engaging correspondents and subsequently stopped paying commission.

He said that basic wages had not been paid for the past six months. While Indian Overseas Bank had paid wages for a brief period, payments had since been stopped, leaving many correspondents without a steady livelihood.

The association urged the State government to take their livelihood concerns seriously and ensure that pending commissions and wages were released, warning that continued delays could demotivate correspondents and affect delivery of essential banking services to the public.