RBI plans to assess impact of pandemic on Business Correspondents

The Reserve Bank of India (RBI) has decided to make an assessment of the impact of the pandemic and resultant pan-India lockdown restrictions on Business Correspondents (BCs).

This is in view of the central bank receiving information that the BCs of some of the banks were largely inactive, thereby adversely affecting the delivery of financial services at the last mile.

The RBI has sought details from banks on the effect of lockdown restrictions on services/activities of BCs; cash management; and customer grievance at BC outlets, among others.

The central bank has underscored the importance of BC business, especially considering the present (pandemic) situation and the need to ensure availability of banking services to the masses.

BCs are retail agents engaged by banks for providing banking services at locations other than a bank branch/ATM. They provide ‘cash in – cash out’ transactions closer to the customer.

As per RBI data, the

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