New Delhi: SKS Trust led by Biksham Gujja has picked up 70 per cent stake in Outreach Financial Services India (OFS India), a startup adopting the model of business correspondents partnering with banks to build, manage and service self-help groups on leading Indian lenders' behalf.
The remaining equity will be held by OFS founder Surya Kumar, several employees and a few US-based investors like Sarath Sura, co-founder of information technology company Sierra Atlantic.
OFS is promoted by former employees of SKS Trust and SKS Microfinance. The company is also close to getting some of the leading Indian banks as clients.
The Business Correspondent Model was initiated in 2006 by the RBI to provide greater financial inclusion and increase the outreach of the banking sector by covering the last mile wherein bank were allowed to use the services of third-party, non-bank agents to extend their services right to people's doorsteps.
The growing initiative has increased the number banked population. Banking correspondents have opened 8.12 crore savings accounts with deposits of R1,822 Cr across the country.