The document discusses the emergence of venture capital (VC) participation in business correspondents (BCs) in India. It notes that while non-VC models faced issues like lack of business skills and low commissions, VCs can help address these by acting as an interface between banks and BCs, providing technology, capital, and oversight of BCs. It provides the example of SEED, a Delhi-based VC that partnered with 19 banks as a BC, opening over 15 lakh accounts through a workforce of 3500 employees. VCs generate revenue through account opening fees, transaction commissions, and commissions on product sales. However, recent microfinance troubles and RBI regulations pose ongoing challenges.

1. Bank Correspondent through Venture Capital Participation -B.V.Raghunandan, SVS College, Bantwal National Conference, KSS College, Subramanya September 8-9, 2011

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