Muthoot Fincorp Ltd. partnersYES BANK Ltd as Business Correspondent
Pune (Feb. 04, 2015): Muthoot Fincorp Limited, the flagship company of Muthoot Pappachan Group (MPG) launched its Business Correspondent operations in the country with YES BANK Ltd., India’s fourth largest private sector bank.The launch is pursuant to the Agreement signed nearly two months back between the two great financial services providers, in sync with RBI’s recent approval on allowing banks to appoint NBFCs (Non-Banking Financial Companies) as Business Correspondents.
With this, Muthoot Fincorpis set to become the country’s first NBFC in the Gold Loan space to act as a Business Correspondent to the Bank. Initially Muthoot Fincorp will roll-out its disbursement of funds for two of YES BANK’s products - a)YES LEAPand b) YES MONEY, from February 03, 2015. YES LEAP (YES Livelihood Enhancement Action Program) is the flagship product of the Inclusive and Social Banking (ISB) division of YES BANK; under this scheme,comprehensive financial services such as Credit, Savings & Insurance to the Self Help Groups will be provided to customers of YES BANK through branches of Muthoot Fincorp.YES MONEYwould help to provide seamless Domestic Remittance service to customers at a reasonable fee, through the wide branch networks of Muthoot Fincorp.
Commenting on the launch,Mr. Thomas Muthoot, Executive Director of Muthoot Fincorp Ltd., said,“We are happy to partner with YES BANK and roll-outthenew services today from our North Paravur KMK Junction branch, Cochin.Now onwards, we would essentially be enrolling YES BANK customers and enabling their transactions at Muthoot Fincorp branches,besides sourcing various deposit and loan products for the Bank as a Business Facilitator.”
Alsospeaking on the occasion, Mr. Thomas George Muthoot, Director of Muthoot Fincorp Ltdsaid, “With this agreement Muthoot Fincorpwhich is amongst the pioneers of financial inclusion would now take formal financial services across the length and breadth of thecountry. Our rural penetration and network would help us to create financial awareness and inclusion at the grass root level.”
Mr. Ajay Desai, Senior President and Chief Financial Inclusion Officer, YES BANK Ltdsaid “With this partnership, we will be able to expand YES LEAP business in Kerala multifold. We have already established a very strong footprint in neighboring Tamilnadu and hope to replicate similar success here”
Mr. Anand Bajaj, President, Innovation & Knowledge Management, YES BANK, who has been part of the team which created YES MONEY program, said that “YES BANK is delighted to have Muthoot Fincorp Ltd. as our Business Correspondent partner in furthering the cause of Digital Financial Inclusion. YES BANK has maintained a pole position in Financial Innovation, especially in the Payments space and would continue to create services which helps the migrants and under/unbanked population. It is important to create transformational use cases for technologies and create eco-system impact.”