Muthoot Finance, the gold loan company, will function as business correspondent for YES Bank. This follows the change in guidelines by RBI which allows banks to engage NBFCs as BCsEarlier banks were not allowed to appoint non-deposit taking NBFCs to act as their BCs. Muthoot Finance hopes that with this tie-up it would be able to offer domestic remittance service to the migrant population in cities. The money can now be collected from Muthoot Finance branches in cash or get it transferred to bank accounts or even be collected through ATMs.
