The Maharashtra State Bank Mitras Association, an affiliate of the Maharashtra State Bank Employees Federation, has alleged that banking correspondents (BCs) are being harassed by banks to obtain retrospective consent from customers for enrolment in two government-backed insurance schemes after premiums had already been debited from their accounts.
In two letters addressed to the financial inclusion departments of Bank of India (BoI) and Bank of Maharashtra (BoM), the association claimed that thousands of bank customer accounts were debited last year for insurance premiums under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) without obtaining the required consent forms.
The association says BCs, popularly known as 'bank mitras', are now being asked to collect those consent forms retrospectively, even though they were not involved in the decision to debit the premiums from account holders.
According to the letters, premium amounts of ₹436 under PMJJBY and ₹20 under PMSBY were debited from a large number of accounts through bulk postings by the banks during the previous financial year.
The association alleged that in several cases these debits were carried out without obtaining the mandatory consent forms from customers, which are required before enrolling them in the schemes.
Subsequently, regulatory observations reportedly required banks to upload customer consent forms for the enrolments. As a result, banking correspondents are now being directed to obtain the forms from customers after debits have already been processed.
The association argued that BCs were not involved in the decision or process of bulk debiting customer accounts.
It says the transactions were executed at the system or branch level under instructions from higher authorities, allegedly to meet enrolment targets for the government schemes.
“BCs were not involved in the decision or process of bulk debiting of customer accounts without consent forms,” the association says in the letters.
The association warned that the practice of seeking retrospective consent has triggered anger among customers, particularly in rural areas where BCs serve as the primary interface between banks and account holders.
When BCs approach customers to sign consent forms after the premium has already been deducted, many customers question the deduction and express dissatisfaction, the association says.
This situation has reportedly led to reputational damage for banking correspondents and, in some cases, hostile behaviour from customers in their service areas.
In their representations, the association has urged both banks to issue clear instructions stating that BCs will not be held responsible for past premium debits carried out without customer consent.
The association has also asked banks to stop pressuring correspondents to obtain retrospective consent forms where the debits were not initiated by them.
Additionally, it has called for a transparent mechanism to resolve the issue in line with regulatory requirements without penalising field-level banking correspondents.
Copies of the letters have also been sent to the Reserve Bank of India (RBI), urging the regulator to intervene and ensure that BCs are protected from harassment.
Banking correspondents play a key role in India’s financial inclusion framework by providing basic banking services in rural and semi-urban areas where physical bank branches are limited. They help customers open accounts, deposit and withdraw money, and enrol in government schemes, acting as a bridge between banks and underserved communities.
The association says holding BCs responsible for administrative decisions taken at higher levels would undermine their credibility and weaken trust between banks and rural customers.
The banks concerned have not yet publicly responded to the allegations.
