BCRC seeks grandfathering as RBI's BC recertification rule nears rollout

BCRC says forcing already certified business correspondents to take advanced IIBF certification may trigger exits as RBI's new rule takes effect on July 1, 2026

In April this year, the Reserve Bank of India’s (RBI’s) Draft Policy 2026–Commercial Banks (Branch Authorisation) of April 2026 said business correspondents (BCs) need to obtain advanced certification from the Indian Institute of Banking & Finance’s (IIBF’s) advanced BC certification.

 

The move sent ripples through the 1.17 million-strong workforce of BCs across the country who bring last-mile banking services to remote and underserved areas. The RBI's suggestion would affect about 45 per cent, or nearly half, of the world's largest boots-on-the-ground financial inclusion initiative.

 

Now, the Business Correspondent Resource Council (BCRC) has sought grandfathering of the requirement that agents on the field who have already passed the certification need to go in for advanced certification.

 

“Thousands of BCs passed the certification under a syllabus that was valid and recognised at the time of examination. Requiring re-certification under a revised syllabus without grandfathering invalidates good-faith certifications,” pointed out D Tripathy, chief executive officer, BCRC. He also demanded that future IIBF syllabus revisions must be accompanied by a minimum 36-month grandfathering window.

 

The RBI’s draft becomes operational from July 1, 2026, leaving less than a fortnight for the new rules to become applicable. The fear is that the new approach may prompt the opposite of its intended effect: a mass exit of agents even as the central bank seeks to expand the network. The BCRC has also maintained that banks should take the responsibility of training as well as the certification process, since the certification tests cost around Rs 1,500. For many BCs, this is the equivalent of half their month's earnings.

 

The National Strategy for Financial Inclusion: 2025-30 released in December 2025 sought to strengthen the BC network. It also batted for a fair and reasonable remuneration structure for such agents to ensure quality and consistency in the delivery of last-mile financial services.

 

Until five years ago, the average commission paid to BCs was nearly Rs 10,000-Rs 11,000 per month which has now fallen to Rs 7,000-Rs 8,000 per month. Nearly 35 per cent of banking agents are being paid less than Rs 5,000 per month, while 15-20 per cent get paid less than Rs 3,000 per month, making it increasingly unattractive in terms of remuneration.

 

There is also challenge from retail delivery platforms such as Swiggy, Zomato, Blinkit and Amazon. Poor remuneration to BC field agents and better payout terms offered to delivery riders by e-commerce and quick commerce firms is making it harder to retain BCs in bigger cities and towns.

 

That said, a February 2022 white paper 'Certification or Inclusion: The challenge facing India’s BCs’ by Indicus Foundation noted that despite efforts, mandates, and deadlines by regulators, lakhs of BCs continue to service those at the bottom of the pyramid without adequate training or official certification. It held that the prescribed curriculum and examination offered through the sole certifying authority, IIBF, are not in sync with the practical realities of the majority of BCs, who undertake only basic cash transactions.

 

According to the Report on Trend and Progress of Banking in India FY25 (the latest available) basic savings bank deposit accounts (BSBDAs), increased by 2.6 per cent to 72.4 crore at end-March 2025, while the aggregate balance in these accounts was up 9.5 per cent to Rs 3.3 trillion. Further, a majority of BSBDAs continues to be channelised through the BC model, indicating their effectiveness at the grassroots level.

 

Facing multiple challenges

• The BC channel is the world's largest boots-on-the-ground financial inclusion initiative with 1.17 million agents in the field; the new norms are likely to affect nearly 45 per cent.
• Average commission to BCs has declined to Rs 7,000-Rs 8,000 p.m.; nearly 35 per cent get less than Rs 5,000 p.m., while 15-20 per cent get than Rs 3,000 p.m.
• BC network faces a challenge from ecom and qcom retailers