Indian Journal of Finance and Banking https://cribfb.com/journal/index.php/ijfb American Finance & Banking Society [Affiliated Societies] en-US Indian Journal of Finance and Banking 2574-6081 PRACTICALITIES OF AGENT BANKING FOR FINANCIAL INCLUSION IN RURAL AREAS OF BANGLADESH https://cribfb.com/journal/index.php/ijfb/article/view/2266 <p style="text-align: justify;"><em>Agent banking is an indispensable part of the inclusive banking system for advancing greater financial inclusion in Bangladesh. These services represent the new extension of branch banking, offering formal banking services in rural regions at a low cost via agents and outlets. The purpose of this study is to examine the agent banking practical uses to meet the financial services needs of the rural population in Bangladesh. Moreover, this study investigates the relation between agent banking presence in rural areas and its uses. Five years of secondary data regarding agent banking have been collected from the statistics department of Bangladesh Bank and presented in tabular form. Besides, to portrait the real picture of practical uses of agent banking, a rural user’s case study has been used in this study. Descriptive with an analytical approach has also been used to analyze the data. Besides, correlation analysis has also been used to measure the relation between agents, outlets, and rural practices. This study found that agent banking services are practically used in rural areas for deposit collection, loan disbursements, remittance services, and utility bill payment. Moreover, it has discovered a favorable relationship between agent banking presence and useful applications in rural areas. The practical applications of the agent banking have advanced significantly in rural areas and included those who were previously denied access to these financial services. While the number of agents and outlets are not sufficient, total rural account holders in agent banking remain low compared to the rural adult population.</em></p> <p><strong>JEL Classification Codes: </strong>G21, G51, G53, C87.</p> Mohammad Rezaul Kabir Kaniz Fatema Ashok Bijoy Das Nityananda Chandra Barman ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2024-12-20 2024-12-20 14 2 1 7 10.46281/ijfb.v14i2.2266 A CASE STUDY ON RISK MANAGEMENT SYSTEM OF A RURAL COOPERATIVE BANK IN INDIA https://cribfb.com/journal/index.php/ijfb/article/view/2276 <p style="text-align: justify;"><em>Rural Cooperative Banks (RCBs) are supervised by National Bank for Agriculture and Rural Development (NABARD) under CAMELSC rating framework. The CAMELSC model is principally performance-oriented while risk factors are not effectively incorporated. NABARD’s Enhanced CAMELSC model, which will be fully implemented by the end of FY26, includes additional risk and control indicators. The purpose of this study is to examine liquidity risk, interest rate risk and credit risk of a District Cooperative Central Bank (DCCB) having good financial position as per the C, A, E and L components of CAMELSC model. Name and data of the bank have been partially modified to maintain confidentiality of the data not available in public domain. The study is based on policies, committee proceedings and quantitative data obtained from a DCCB, discussion with bank officials, and periodic returns submitted to NABARD. The study employed various guidelines by RBI and NABARD. The stock and flow approaches suggested that the bank had moderate liquidity risk. Application of Interest Rate Sensitivity Statements, Macaulay Duration of investment portfolio, and MCLR methodology for interest rate benchmarking showed low interest rate risk. Altman’s z-score model illustrated credit risk in institutional clients viz. PACS and logistic regression model for retail customer scoring indicated limitation in capturing credit risk of its retail customers. The capital adequacy assessment also indicated the bank had insufficient RoA to give dividend as per its mandate.</em><em> Bank did not have governance mechanism in place such as Credit Risk Management Committee or having effective ALCO to carry out executive functions of monitoring and controlling risk controls/ limits as per the policy.</em></p> <p><strong>JEL Classification Codes: </strong>G21, G28.</p> Aditya Nikam ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2024-12-20 2024-12-20 14 2 8 14 10.46281/ijfb.v14i2.2276