Business Correspondent Agreement

1. Definitions and Interpretation

"Business Correspondent" (BC) refers to the individual or entity appointed by the NBFC to provide banking and financial services to customers on behalf of the company. "Principal" refers to Sathi Loan and its parent NBFC entity. "Services" refers to all activities conducted under this agreement including loan sourcing, documentation, collection, and customer service.

2. Appointment and Scope

The Principal hereby appoints the Business Correspondent to act as its agent for the following purposes:

1. Identification and verification of prospective borrowers
2. Collection and preliminary verification of loan applications and documents
3. Disbursement of small value loans as authorized
4. Collection of loan repayments and recovery activities
5. Cross-selling of financial products approved by the Principal
6. Customer grievance redressal at the first level

3. Compliance and Regulatory Requirements

The Business Correspondent agrees to comply with all applicable laws, regulations, and guidelines issued by the Reserve Bank of India (RBI), including but not limited to the RBI Master Directions on Outsourcing and BC Guidelines. The BC shall maintain all necessary licenses and registrations required for conducting financial services activities.

4. Duties and Responsibilities

The Business Correspondent shall:

1. Conduct all activities with due diligence, integrity, and in good faith
2. Maintain strict confidentiality of customer information and business data
3. Not charge any fees directly from customers beyond approved amounts
4. Display the Principal's identity prominently at all customer touchpoints
5. Maintain accurate records of all transactions and submit reports as required
6. Undergo training programs as mandated by the Principal
7. Not engage in any activity that may harm the reputation of the Principal

5. Commission and Payment Terms

The Business Correspondent shall be entitled to commission as per the rate card provided separately. All payments shall be made after deduction of applicable taxes. The Principal reserves the right to adjust commissions against any losses arising from fraud, default, or misconduct attributable to the BC.

6. Term and Termination

This agreement shall remain valid for a period of one (1) year from the date of execution and may be renewed upon mutual consent. Either party may terminate this agreement with thirty (30) days written notice. The Principal may terminate immediately in case of fraud, misconduct, or regulatory violations by the BC.

7. Indemnification

The Business Correspondent agrees to indemnify and hold harmless the Principal against any claims, damages, losses, or expenses arising from the BC's negligence, fraud, misconduct, or breach of this agreement or applicable laws.

8. Confidentiality

The BC shall maintain strict confidentiality regarding all proprietary information, customer data, business processes, and trade secrets of the Principal. This obligation shall survive the termination of this agreement.

9. Dispute Resolution

Any disputes arising under this agreement shall be resolved through mutual discussion. If unresolved, the matter shall be referred to arbitration under the Arbitration and Conciliation Act, 1996. The seat of arbitration shall be as per the Principal's registered office jurisdiction.

10. Governing Law

This agreement shall be governed by and construed in accordance with the laws of India. The courts at the Principal's registered office location shall have exclusive jurisdiction over any matters arising from this agreement.