Rural residents engaging with banking agents at a local financial service point in India.
The Reserve Bank of India (RBI) is revamping its business correspondent (BC) model to enhance last-mile delivery of financial services. The overhaul introduces new service points, including Business Correspondent-Banking Outlets (BC-BOs) and Business Correspondent-Banking Touchpoints (BC-BTPs), aimed at improving customer service and expanding financial inclusion across India.
The revised framework mandates that banks conduct thorough due diligence on new business correspondents. This measure is designed to ensure the integrity and reliability of the BC network, which serves as a crucial interface for delivering banking services in remote and underserved areas.
The move is expected to significantly enhance banking access, particularly in rural and semi-urban regions where traditional bank branches are limited. By leveraging the BC model, the RBI aims to bridge the financial inclusion gap and bring a wider range of banking services to a larger segment of the population.
These changes are proposed to enhance banking access and ensure more effective financial service delivery. The initiative aligns with the RBI’s broader goal of promoting inclusive growth and financial empowerment across the country.
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