{"id":360322,"date":"2026-04-08T17:57:12","date_gmt":"2026-04-08T12:27:12","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=360322"},"modified":"2026-04-08T17:57:12","modified_gmt":"2026-04-08T12:27:12","slug":"rbi-revises-banking-correspondent-classification","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/rbi-revises-banking-correspondent-classification\/","title":{"rendered":"RBI Revises Banking Correspondent Classification"},"content":{"rendered":"<p><strong>News<\/strong>: The Reserve Bank of India proposed restructuring of Business Correspondent framework with new classification, governance norms, and remuneration standards, inviting comments.<\/p>\n<h2>About RBI Revises Banking Correspondent Classification<\/h2>\n<ul>\n<li>It introduces a structured framework with defined delivery points, governance norms, and remuneration standards to improve efficiency and oversight.<\/li>\n<li><strong>Business Correspondents (BCs):<\/strong> Business Correspondents are individuals or entities engaged by banks to provide basic banking services in areas where bank branches are not present.<\/li>\n<li><strong>Effective Date:<\/strong> The framework will come into <strong>force from July 1, 2026,<\/strong> with <strong>transition timelines<\/strong> up to <strong>September 30, 2026 for classification and migration.<\/strong><\/li>\n<li><strong>Key Features:<\/strong>\n<ul>\n<li><strong>Types of Delivery Points:<\/strong> The draft defines <strong>three delivery points<\/strong>\u2014<strong>Branch<\/strong>, <strong>Business Correspondent- Banking Outlet (BC-BO)<\/strong> and <strong>Business\u00a0Correspondent- Banking Touchpoint (BC-BT)<\/strong>\u00a0 for service delivery.<\/li>\n<li><strong>Transition of Business Facilitators:<\/strong> The draft removes the separate category of Business Facilitators, and existing entities must transition into BC-BO or BC-BT by September 30, 2026.<\/li>\n<li><strong>Functioning of BCs<\/strong>: BC-BOs will operate as fixed service units for <strong>at least four hours daily and five days a week<\/strong>, while BC-BTs will provide limited services such as small-value transactions and remittances with flexible hours.<\/li>\n<li><strong>Recognition<\/strong>: BC-BOs will be treated as banking outlets for regulatory purposes within the framework.<\/li>\n<li><strong>Coverage<\/strong>: The presence of BC-BOs will be considered for classification of centres as banked, including unbanked rural centres.<\/li>\n<li><strong>Governance<\/strong>: Banks must adopt Board-approved policies and review BC operations at least once every six months.<\/li>\n<li><strong>Accountability<\/strong>: Banks will remain fully responsible for the acts of BCs and their sub-agents.<\/li>\n<li><strong>Remuneration<\/strong>: BC-BOs will receive a combination of fixed and variable pay, while BC-BTs will receive only variable pay.<\/li>\n<li><strong>Operations<\/strong>: All transactions must be conducted online and integrated with core banking systems, along with customer protection safeguards.<\/li>\n<li><strong>Training and Certification:<\/strong> Individuals operating BC-BOs must obtain advanced certification, while those operating BC-BTs must complete basic training or certification within prescribed timelines.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: The Reserve Bank of India proposed restructuring of Business Correspondent framework with new classification, governance norms, and remuneration standards, inviting comments. About RBI Revises Banking Correspondent Classification It introduces a structured framework with defined delivery points, governance norms, and remuneration standards to improve efficiency and oversight. Business Correspondents (BCs): Business Correspondents are individuals or&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/rbi-revises-banking-correspondent-classification\/\">Continue reading <span class=\"screen-reader-text\">RBI Revises Banking Correspondent Classification<\/span><\/a><\/p>\n","protected":false},"author":10401,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,12039],"tags":[11872],"class_list":["post-360322","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-knolls","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/360322","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10401"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=360322"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/360322\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=360322"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=360322"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=360322"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}