Kochi | Muthoot Fincorp, the flagship company of Muthoot Pappachan Group, today launched its Business Correspondent operations in the country with Yes Bank.
The launch is pursuant to the agreement signed nearly two months ago between the two financial services providers after RBI gave its nod on allowing banks to appoint non-banking financial companies (NBFCs) as Business Correspondents.
Thomas Muthoot, Executive Director of Muthoot Fincorp told reporters that with this arrangement, MFL is set to become the country’s first NBFC in the gold loan space to act as a Business Correspondent to the bank.
Muthoot Fincorp rolled out its disbursement of funds for two of Yes Bank’s products– Yes Leap (Yes Livelihood Enhancement Action Programme) is the flagship product of the inclusive and Social Banking (ISB) division of Yes Bank.
Under this comprehensive financial services such as credit, savings and insurance to the self-help groups will be provided to customes of Yes Bank through branches of MFL. The ‘Yes Money’ would help to provide seamless domestic remittance service to customers at reasonable fee.
Muthoot said the new services have been rolled out from one of their branches here.
Ganesh Narayanan, President and RBL-Indian Financial Institutions, Yes Bank Ltd, said that in Tamil Nadu they have done a business of Rs 150 crore with two partners in the last two years. In Kerala, where Yes Bank has also partnered with Muthoot Finance ltd, was looking to roping in more partners. ‘We are not chasing any targets’, he said. Yes Bank has 40 business correspondents across the country.
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