Guidelines for Engaging Business Correspondents

India

(amended through 2010)

The Guidelines for Engaging Business Correspondents (BC) are issued by the Reserve Bank of India (RBI). All commercial banks that comply with these guidelines are authorized to engage business correspondents in order to expand the reach of banking services. Non-Banking Financial Institutions (NBFIs) are not authorized to engage BCs. The Guidelines, most recently amended in September 2010 (RBI/2010-11/217) cover the following issues:

  1. Introductory;
  2. Eligible individuals/entities;
  3. BC model;
  4. Scope of activities;
  5. Know-Your Customer (KYC) norms;
  6. Customer confidentiality;
  7. Information technology standards;
  8. Distance criterion;
  9. Payment of commission/fee;
  10. Transactions put through BC;
  11. Internal control and monitoring;
  12. Consumer protection measures;
  13. Redressal of grievances; and
  14. Customer education.