Central bank revises banking correspondent classification

The RBI has proposed that in addition to bank branches, banking correspondents should be classified into two categories based on their assignments and suggested uniformity in fixing their wages.

In the draft norms on branch authorisation released on Monday, the RBI proposed defining three types of delivery points — bank branches, Business Correspondent-Banking Outlet and Business Correspondent-Banking Touchpoint.

Banking correspondents are assigned in remote areas to perform retail banking operations, expanding the reach of banks and helping in financial inclusion. Currently, there is no classification among business correspondents, while the commissions they get paid vary from bank to bank. As of June 2025, there were over 16 lakh business correspondents engaged by various lenders.