The Reserve Bank of India (RBI) has unveiled a refreshed Business Correspondent (BC) framework designed to strengthen last-mile delivery of financial services, improve oversight, and create more sustainable compensation structures for BC agents. This move is widely seen as a significant step forward in deepening financial inclusion, especially across rural and underserved regions of the country.
As a leading technology-enabled provider of financial inclusion and e-governance solutions and largest BC player, BLS E-Services, welcomes the announcement and expressed strong optimism about its long-term impact on the ecosystem.
Commenting on the development, Mr. Lokanath Panda, COO, BLS E-Services, said:
“The RBI’s progressive overhaul of the Business Correspondent framework is both timely and transformative. By bringing greater clarity to compensation, strengthening monitoring mechanisms, and introducing more structured operational models, the new guidelines will go a long way in enhancing service quality, accountability, and trust at the grassroots level.”
The revised framework introduces several important changes, including tighter regulatory oversight, more standardized and transparent compensation models for BC agents, and a refined structure for BC operations to improve efficiency and governance. Together, these measures are expected to create a more resilient and scalable ecosystem for delivering banking services beyond traditional branches.
The Reserve Bank has also proposed that BC Banking Outlets be compensated a combination of fixed and variable remuneration, while BC Banking Touchpoints will receive variable remuneration. The fixed component is to be benchmarked and determined through a mechanism under the Indian Banks’ Association. The draft also indicates that variable remuneration will include parameters such as customer satisfaction, in addition to transaction volumes.
The draft provides for a progressive reduction in prefunding requirements BCs and sub agents, linked to performance, service quality, and business relationship. The Reserve Bank has asked comments / feedback on the draft Amendment Directions to be submitted by the regulated entities and members of public / other stakeholders on or before May 05, 2026.
For BLS E-Services, which operates at the intersection of technology and financial access, the new framework reinforces the importance of strong, well-supported BC networks. The company believes these changes will not only elevate service standards but also encourage greater adoption of digital banking solutions, while ensuring more stable and rewarding opportunities for BC agents on the ground.
As India continues its journey toward inclusive growth, BLS E-Services remains committed to strengthening its platform, empowering its partners, and aligning closely with RBI’s evolving vision for a more accessible, transparent, and digitally enabled financial ecosystem.
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