Amid growing demand for currency, the RBI on Tuesday asked banks to explore the possibility of using the services of business correspondents to distribute banknotes and coins. In the Monetary Policy Statement 2013-14, the Reserve Bank of India had stated there was a need to identify alternative distribution avenues to effectively meet the growing demand for banknotes and coins. Currently, the scope of activities of business correspondents includes identification of borrowers, collection and preliminary processing of loan applications, creating awareness about savings and other products and processing and submission of applications to banks. Services of business correspondents could also be used by banks for follow-up for recovery, disbursal of small value credit and collection of small value deposits. Non-governmental organisations, micro-finance institutions, section 25 companies and post offices, amongothers, could act as business correspondents.