The RBI has released new guidelines for Business Correspondents in Banks. The RBI has released draft guidelines regarding the BCs.
Business Correspondents can be appointed in Banks in two ways:
- Business Correspondent – Banking Outlet (BC-BO)
- Business Correspondent – Banking Touchpoint (BC-BT)
All existing banking outlets manned by BCs shall be classified as BC-BO or BC-BT by September 30, 2026, and the CISBI portal shall be updated suitably. BCs cannot function from Branches. Foreign banks (operating in branch mode) can engage BC only through BC-BT structure.
Due diligence shall be carried out on the individuals / entities to be engaged as BCs prior to their engagement. The due diligence exercise may, inter alia, cover aspects such as (i) reputation / market standing, (ii) financial soundness, (iii) management and corporate governance, (iv) cash handling ability and (v) ability to implement technology solutions in rendering financial services. Further, banks shall also carry out periodic updation of KYC of BC and BC sub-agents.
The following entities shall not be engaged as BCs:
- Banks, except Payments Bank,
- Deposit taking Non-Banking Finance Companies,
- Primary Agricultural Credit Society, unless they are on CBS and have transferred assets and liabilities to respective DCCBs,
Works that can be done by BC
BC can do following work in Banks:
- Opening of Basic Savings Bank Deposit Accounts (BSBDA), Recurring Deposit (RD) Account
- Opening / Renewal of Term Deposit Account
- Cash Deposit, Withdrawal and Transfer (ON-US/OFF-US)
- Funds Transfer – IMPS/NEFT/AePS, etc.
- SHG Dual Authentication transactions
- Issuance/blocking of Debit Cards
- Balance enquiry (ON-US/OFF-US)
- Mini Statement (ON-US/ OFF-US)
- Request for new cheque book
- Stop payment of cheque
- Cheque status enquiry
- Cheque collection
- Aadhaar seeding
- Mobile seeding in accounts
- Updation of Passbook
- Request for SMS alert / email statement
- Pension life certificate
- Payment of Utility Bills
- Lodging and tracking of complaints
- Lead generation for retail loans viz., Home Loan, Auto Loan, Personal Loan, Gold Loan, Mudra Loan, Kisan Credit Card, Microfinance and SHG Loans.
- Disbursal of small value credit
- Post-sanction monitoring and follow-up for recovery
- Lead generation and sale of micro insurance / mutual fund products / pension products / other third-party products, credit cards, etc.
- Lead generation for opening of Current Accounts
- Updation/ Periodic updation of Customer KYC
- Distribution of bank notes and coins
BC can be marked as inactive
BC-BO shall be classified as ‘Inactive’ if there are no login or financial / nonfinancial transactions for a continuous period of 60 days. The existing AePS Touchpoint Operator (ATO) guidelines which prescribe 90 days inactivity norm may be applicable exclusively to BC-BT. A BC-BO classified as ‘inactive’ shall be reported as such on the BC registry portal and the relevant record shall be updated in the CISBI appropriately.
Download RBI Circular for Business Correspondents in Banks
