The Reserve Bank of India has issued draft amendments to its branch authorisation directions for public comment, covering commercial banks, small finance banks, payments banks, local area banks, regional rural banks, and urban and rural co-operative banks. The proposals are intended to streamline and harmonise how regulated entities use Business Correspondents to support last-mile delivery of financial services. The draft amendments would define three types of delivery points: branches, Business Correspondent–Banking Outlets (BC-BOs) and Business Correspondent–Banking Touchpoints (BC-BTs). They also propose simplifying eligibility criteria for engaging Business Correspondents, subsuming Business Facilitators under the Business Correspondent model, and introducing uniformity across the Business Correspondent ecosystem on commission and remuneration. Comments from regulated entities and other stakeholders are due by May 05, 2026 via the Reserve Bank of India’s Connect 2 Regulate portal or by email using the specified subject line for the relevant draft directions.
Reserve Bank of India 2026-04-06
Reserve Bank of India launches consultation on branch authorisation amendments to standardise Business Correspondent delivery points
The Reserve Bank of India has issued draft amendments to its branch authorisation directions for a wide range of banks to streamline and harmonise the use of Business Correspondents in last-mile delivery of financial services. The proposals define three types of delivery points, simplify eligibility criteria for engaging Business Correspondents, subsume Business Facilitators under the Business Correspondent model, and introduce uniform commission and remuneration norms across the ecosystem.