Updated 27 September 2026. A business correspondent, or BC, is an agent engaged by a bank to help deliver banking services outside a conventional branch. A local banking correspondent outlet can make everyday transactions more accessible, but it is not an independent bank and cannot promise every service a branch provides.
If you want to use an outlet, first establish which bank stands behind it. If you want to become an agent, start with the bank’s authorised onboarding channel and a written commercial agreement. A promise of an “RBI franchise” or a guaranteed monthly income is not enough.
What does a business correspondent do?
The work depends on the bank, the agent’s authorisation and the technology available. In its 17 February 2026 review, the Department of Financial Services described BC services including account opening, cash deposits and withdrawals, re-KYC and micro-insurance. That does not mean every outlet can complete all these services for every customer.
| Service you need | Check before starting |
|---|---|
| Cash deposit or withdrawal | Supported bank/account, transaction limit, available cash, authentication method and published charge. |
| Account opening or re-KYC | Whether the outlet can complete the process or only assist with an application, and which documents the bank requires. |
| Balance or transaction information | What is available through that terminal and how you will receive confirmation. |
| Insurance or other product assistance | The actual provider, agent’s authorisation, product terms and where to raise a complaint. |
Think of the BC as a service point connected to a bank. The important question is not just “Is there a machine here?” It is “Is this person authorised, and is this particular transaction supported?”
Is a banking correspondent the same as a bank employee?
Not necessarily. The relationship may involve a bank, a corporate BC and a local agent. An outlet’s branding does not by itself establish employment, a salary or authority to approve a loan.
RBI’s 2 March 2012 BC circular set out banks’ responsibility for their BCs and retail outlets or sub-agents. Its 2013 branch-authorisation master circular, section 15, provides historical background on agreements, customer protection and fees. These dated documents explain the model; an applicant should obtain the bank’s current rules and contract before signing up.
How to become a business correspondent agent
- Contact the bank through an official channel. Ask its branch or financial-inclusion team whether it is onboarding BC outlets in your area and which organisations are authorised to do so.
- Get the eligibility criteria in writing. Ask about education, identity and address documents, background checks, premises, equipment, training and certification. Do not rely on a universal age or qualification claim from a franchise advert.
- Verify the intermediary. If a company offers onboarding, have the bank confirm its role and the proposed outlet arrangement independently.
- Read the commercial terms. Establish which payments are refundable, who owns the device, how commissions are calculated, when they are paid and who handles failed transactions or cash discrepancies.
- Complete the required training and activation. Do not start handling customers’ money before the bank or authorised provider confirms that the outlet is active.
IIBF publishes information about its business correspondent and facilitator certification examinations. Check the bank’s required qualification and the institute’s current rules before registering. Passing an examination does not itself appoint you as an agent or guarantee business.
Business correspondent commission: what can you earn?
There is no single verified commission or monthly salary that applies to all BC agents. Your written agreement should explain the rate for each eligible service, any fixed payment, performance conditions, deductions and settlement schedule. The DFS review also discussed commission structures, which is a reason to examine the actual arrangement rather than assume an industry-wide income.
Illustration only: suppose your contract pays ₹5 for each eligible completed transaction and you complete 40 such transactions a day for 25 days. Gross transaction income would be ₹5 × 40 × 25 = ₹5,000 for the month. This is not a quoted bank rate or an earnings forecast.
Now subtract your actual costs: premises, connectivity, equipment, travel and any staff or cash-handling expenses. Failed transactions may not earn commission. Before investing, estimate a low-volume month as well as your expected month. Ask an existing authorised operator about workload, but verify financial promises against your own contract.
Are BC services free? What are the transaction limits?
Do not assume either that every service is free or that a universal ₹10,000 limit applies. RBI’s historical framework distinguishes bank-published charges from fees an agent independently collects. Check the bank’s current tariff, the service and the account conditions. For example, Bank of Baroda publishes service charges, including conditions for services offered through BC points.
Ask for the exact charge before authorising the transaction. Also ask about the per-transaction and daily limits, any transaction-count limit and whether that outlet has enough cash. Never split transactions merely because someone claims it avoids a rule or verification requirement.
How customers can use an outlet more safely
- Confirm the bank’s name, outlet identity and contact details for the linked branch.
- Check the amount on the device before authorising it. Do not share your banking password or PIN with an agent.
- Keep the receipt or transaction reference and independently check your account. An SMS can be delayed, so its absence alone does not tell you the final transaction status.
- If money is debited but cash is not received, record the time, amount, outlet and transaction reference. Contact your bank through its official complaint channel; avoid repeating the withdrawal until its status is clear.
- Do not pay an extra “release fee” to recover a failed transaction.
NPCI’s complaint facility routes relevant complaints to member institutions for action; it is not a promise of an instant refund. Keep the bank’s complaint reference and follow its escalation process.
For routine account enquiries, our verified WhatsApp banking directory links directly to the participating banks’ official instructions. Check which services are supported before using them.
What about the proposed 2026 BC changes?
An earlier version of this article presented proposed changes as settled rules and suggested assured income. We have removed those claims because we could not verify a final RBI notification supporting them during this review. This is not a claim that no subsequent rule exists. For an application or contract decision, ask the bank for the current applicable RBI notification and its implementation terms.
Frequently asked questions
Can I apply directly to RBI for a BC franchise?
Use the bank’s verified onboarding route. Do not treat a private seller’s claim of “RBI approval” as evidence that it can appoint you or collect money from you.
Can a BC guarantee loan approval?
No such promise should be relied on. Assistance with an application is different from the lender’s decision to sanction and disburse a loan.
Can I use any BC outlet with any bank account?
Ask first. Compatibility depends on the service, bank and network. A supported balance enquiry does not prove that every other service is available.
Last Updated on 1 month ago by Team Paisaseekho
