RBI Circular on the Use of Business Facilitators and Business Correspondents
(enacted in 2006)
RBI Circular on the Use of Business Facilitators and Business Correspondents of 2006 (DBOD.No.BL.BC. 58/22.01.001/2005-2006), issued by the Reserve Bank of India, requires each bank to establish “grievance redressal machinery” to redress complaints about services rendered by Business Correspondents and Business Facilitators and widely publicize this machinery through electronic and print media.
This circular addresses the following topics:
- Financial Inclusion by Extension of Banking Services – Use of Business Facilitators and Correspondents;
- Business Facilitator Model: Eligible Entities and Scope of Activities;
- Business Correspondent Model: Eligible Entities and Scope of Activities;
- Payment of commission/fees for engagement of Business Facilitators/Correspondents;
- Other Terms and Conditions for Engagement of Business Facilitators/Correspondents
- Redressal of Grievances in regard to services rendered by Business Facilitators/Correspondents; and
- Compliance with Know Your Customer (KYC) Norms.