The Reserve Bank of India (RBI) has put forward a recommendation to categorize banking correspondents into two distinct groups based on their roles, in addition to the existing classification of bank branches. This proposal aims to establish a standardized approach to their remuneration.<\/p>\n
In the draft regulations concerning branch authorization released on Monday, the RBI outlined the need to identify three types of banking service points: bank branches, Business Correspondent-Banking Outlets, and Business Correspondent-Banking Touchpoints.<\/p>\n
Banking correspondents play a crucial role in providing retail banking services in remote regions, thereby enhancing the accessibility of banking services and contributing to financial inclusion. Currently, there is no specific classification among these correspondents, and the commission rates they receive differ from one bank to another. As of June 2025, more than 1.6 million banking correspondents were employed by various financial institutions.<\/p>\n
In a separate announcement, the RBI confirmed that the investment limits for Foreign Portfolio Investors (FPIs) in Government Securities (G-Secs), State Government Securities (SGSs), and corporate bonds will remain stable at 6%, 2%, and 15%, respectively, of the total outstanding securities for the fiscal year 2027 under the general route.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Reserve Bank of India (RBI) has put forward a recommendation to categorize banking correspondents into two distinct groups based on their roles, in addition to the existing classification of bank branches. This proposal aims to establish a standardized approach to their remuneration. In the draft regulations concerning branch authorization released on Monday, the RBI […]<\/p>\n","protected":false},"author":2,"featured_media":3987,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[797,702,40],"tags":[],"class_list":["post-3988","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-in-banking-and-finance","category-in-business","category-india"],"yoast_head":"\n