The Reserve Bank of India (RBI) on Monday launched draft norms pertaining to banks' engagement with business correspondents (BCs). Banks use BCs to source deposits, loans and provide basic banking services in the under-served remote parts of the country.
The regulator has proposed to define three types of delivery points—branch, Business Correspondent- Banking Outlet (BC-BO) and Business Correspondent- Banking Touchpoint (BC-BT). The regulator also proposed simplifying the eligibility criteria for lenders to engage with BCs.
“BCs have been functioning as critical enablers of last mile access to financial services, particularly in respect of underserved, ural, and remote locations. Reserve Bank had set up a committee, consisting of officials from Reserve Bank, DFS, IBA and NABARD, to comprehensively examine their operations and make suitable recommendations for enhancing their efficiency,” the regulator said.
Further, the RBI proposed subsuming Business Facilitators(BFs) under BC model and bringing uniformity in the BC ecosystem in respect of payment of commission/ remuneration.
The central bank has sought public feedback on the draft norms by May 5.
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