Muthoot Finance to Act as Business Correspondent of YES BANK

Muthoot Finance Ltd, one of the pioneers and leaders in the gold loan industry has entered into an arrangement with YES BANK Ltd, fourth largest private sector bank in India, wherein it would act as the Business Correspondent (BC) of the Bank. Muthoot Finance Ltd is going to be the first NBFC to enter into the Business Correspondent segment post the revised regulations from RBI. Under this arrangement Muthoot Finance Ltd would now offer services of the bank to the public through its 4,256 branches spread across the country.

A Business Correspondent is a representative who offers services on behalf of the bank to the public. Earlier banks were not allowed to appoint NBFCs to act as their BC; however the RBI through its circular in June last year permitted banks to appoint Non Deposit taking NBFCs as their Business Correspondents.

Over the past seven decades of its existence Muthoot Group has spread its presence across different segments of society be it the rural folklore or the urban populace. The company has built a connect between these segments and would leverage this strength through the BC arrangement with YES BANK wherein it would offer Domestic Remittance service to the migrant population in cities within the country who often find it difficult to remit money back home to their families in rural areas. The money can now be collected from Muthoot Finance branches in cash or get it transferred to their bank accounts or even be collected through ATMs.

Informing about the BC engagement with YES BANK, Mr. George Alexander Muthoot, Managing Director of Muthoot Finance said that “Through this arrangement Muthoot Finance has leaped another step forward towards achieving its goal of taking financial services to the door steps of every citizen in the country, which ultimately is the aim of Financial Inclusion as well.” Mr. Muthoot believes that the company has always been at the forefront of Financial Inclusion; even before the term gained its popularity. He also said that partnering with one of the largest private sector banks in the country like YES BANK will further strengthen and add value to the company.

YES BANK has been a pioneer in creating the interoperable Domestic Remittance service by using IMPS services of the National Payments Corporation of India (NPCI). Mr. Anand Bajaj, President, Innovation & Knowledge Management, who has been part of the team which created Yes Money program, said that “YES BANK is delighted to have Muthoot as our BC 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.”

About Muthoot Finance Ltd.

Muthoot Finance Limited is the largest gold financing company in India in terms of loan portfolio. The company is a “Systemically Important Non-deposit taking NBFC” head quartered in the southern Indian state of Kerala. Operating history of Muthoot Finance has evolved over a period of 76 years since M George Muthoot (the father of our Promoters) founded a gold loan business in 1939 under the heritage of a trading business established by his father, Ninan Mathai Muthoot, in 1887.

The company provides personal and business loans secured by gold jewellery. Gold Loans are primarily given to individuals who possess gold jewellery but could not access formal credit within a reasonable time, or to whom credit may not be available at all to meet unanticipated or other short-term liquidity requirements. The company is listed on both National Stock Exchange and Bombay Stock Exchange.