Monitoring Committee Enhances Role of Business Correspondents in Banking
The Tenth Meeting of the Monitoring Committee on Business Correspondents took place today in New Delhi, chaired by Shri M. Nagaraju, Secretary of the Department of Financial Services. The session was primarily dedicated to reviewing progress on previous action points while also addressing new agenda items. Attendees included members of the Monitoring Committee, Chief General Manager of the Financial Inclusion and Development Department from the Reserve Bank of India (RBI), CEO of the National Payments Corporation of India (NPCI), executive directors from public sector banks, and senior officials from private banks, NABARD, and various BC associations.
Discussions on Key Issues
The discussions highlighted several critical areas related to the operations of Business Correspondents (BCs). Topics included the services offered by BC agents, digital monitoring efficiencies, commission structures—especially in North Eastern and hilly regions—and the geotagging of BC locations. Detailed deliberations saw active participation from all stakeholders, showcasing a commitment to improve the functionality of BCs across the banking landscape.
Progress Acknowledged
Shri Nagaraju lauded the Indian Bank Association for operationalizing the BC Registry, which is set to go live on November 20, 2025. This registry aims to tackle issues such as duplicate BC identification and the comprehensive tracking of BC service records. As of now, most member banks have successfully geotagged their BC points. Currently, BCs are providing a variety of essential services, with a minimum of 42 services being offered at BC locations, including account opening, cash deposits and withdrawals, re-KYC processes, and enrollment in micro-insurance programs.
Future Directions for Business Correspondents
Emphasizing the crucial role of BCs in the broader banking ecosystem, Shri Nagaraju urged all banks to enhance their service offerings at BC points to meet evolving customer needs. He stressed the importance of continuously improving processes to resolve challenges faced by BCs and their organizations. The meeting concluded with a vote of thanks to the chair, reinforcing the collaborative spirit among the various banking stakeholders involved.
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