MUMBAI, April 6 (Reuters) – The RBI (Reserve Bank of India) on Monday proposed tighter rules for bank agents delivering last-mile services in rural and underbanked regions, including stricter oversight, revised pay structures and stronger due diligence.
The central bank outlined plans to reclassify and regulate business correspondents under two distinct models, enhance monitoring, and revise compensation structures.
Here are some details:
- The central bank has proposed two models of agent banking: Business correspondent banking outlets (BC-BO) and business correspondent banking touchpoints (BC-BT) with clearly defined scope of actions.
- BC-BOs are envisioned as fixed units operated by agents with working-hour requirements similar to bank branches.
- BC-BT, however, can only offer limited, small-value services with flexible hours.
- Banks must reclassify existing BC-manned outlets as either BC-BO or BC-BT by September 30, 2026.
- The RBI has also revamped the remuneration structure for these agents. BC-BO operators are proposed to have both fixed and variable pay, while BC-BT operators are eligible for only variable remuneration.
- A committee set up by the Indian Banks’ Association, an industry grouping, has been tasked with setting the fixed monthly remuneration for eligible agents.
- Banks will be fully responsible for their BCs’ actions and must conduct regular on-site and off-site monitoring of all banking outlets.
- Regulated entities and the public can submit their feedback on these draft guidelines by May 5, which will then be reviewed by the central bank before it issues the final directions.
This report is given by Press Trust Of India. The Sen Times holds no responsibility for its content.
What are the new RBI business correspondent models for 2026?
RBI will categorize agents into Business Correspondent Banking Outlets (BC-BO) and Business Correspondent Banking Touchpoints (BC-BT). BC-BOs function as fixed units with mandatory working hours, while BC-BTs serve as flexible units restricted to processing limited, small-value financial transactions for underbanked populations.
How will the RBI business correspondent remuneration structure change?
Research indicates a shift toward a tiered compensation model where BC-BO operators receive both fixed and variable pay. In contrast, BC-BT operators remain eligible only for variable remuneration. The Indian Banks’ Association is currently tasked with determining the specific fixed monthly amounts for eligible agents.
What are the new compliance requirements for bank agent oversight?
The draft guidelines mandate that banks assume full legal and operational responsibility for the actions of their business correspondents. Institutions must implement rigorous on-site and off-site monitoring protocols to ensure that all banking outlets comply with stricter due diligence and revised regulatory reporting standards.