DFS secy urges stronger BC ecosystem, better services and process upgrades

M Nagaraju highlighted the vital role of Business Correspondents in last-mile banking, urging continuous process improvement, service expansion and enhanced digital oversight to meet customer needs

Emphasising the critical role played by Business Correspondents (BCs) in deepening financial inclusion across the country, Department of Financial Services (DFS) Secretary M Nagaraju on Tuesday called for continuous improvement in processes and expansion of services at BC points to meet evolving customer needs.

 

Chairing the tenth meeting of the Monitoring Committee on Business Correspondents in New Delhi, Nagaraju underscored the importance of strengthening the BC ecosystem to ensure last-mile delivery of banking services, particularly in remote and underserved regions. 

According to an official statement issued by the DFS, “Nagaraju emphasized the critical role played by BCs in the banking ecosystem and need for continuous improvement in processes.” The statement added that the meeting aimed to deliberate upon progress made on action points emerging from the previous meeting as well as fresh agenda items. 

 

The meeting was attended by members of the Monitoring Committee along with the Chief General Manager, Financial Inclusion and Development Department of the Reserve Bank of India, the CEO of National Payments Corporation of India, executive directors of public sector banks, senior officials from private sector banks, representatives of the Indian Banks' Association, National Bank for Agriculture and Rural Development and BC associations.

 

Discussions during the meeting focused on key operational and policy issues relating to BC functioning. These included the range of services provided by BC agents, digital monitoring mechanisms, commission structures — especially in north-eastern and hilly areas — and geotagging of BC outlets.

 

DFS noted that detailed deliberations were held on all agenda items with active participation from stakeholders. Nagaraju appreciated the efforts of the Indian Banks’ Association in operationalising the BC Registry with effect from November 20, 2025.

 

“The registry incorporates important features such as identification of duplicate BCs, capturing of service records of BC performance etc.,” the official statement said. The move is expected to enhance transparency, improve oversight and strengthen accountability within the BC framework.

 

The Committee was informed that member banks have completed geotagging of their BC points. As of now, most banks are providing a minimum of 42 services at BC outlets. These include account opening, cash deposit and withdrawal, re-KYC compliance and enrolment under micro-insurance schemes, among others.

 

In his remarks, Nagaraju advised banks to further scale up and expand the bouquet of services available at BC points in line with changing customer requirements. Officials indicated that expanding service offerings and strengthening digital tracking mechanisms would help improve service quality and customer experience at the grassroots level.

 

The issues faced by BC organisations were also deliberated upon during the meeting, and possible resolutions were discussed with participating stakeholders.