Who are Business Correspondents (BCs)?
With a view to ensure the greater financial inclusion and increasing the penetration of banking services to vast sections of the underprivileged sections of the society, A few years back RBI allowed banks to
use the services of well-established NGOs, SHGs, MFIs, Post Offices, and others as intermediaries. With the help of the intermediaries, through the use of Banking Correspondent model, banks can extend
their services. In September 2010, RBI allowed banks to appoint companies as Business Correspondents who can sell banking products to vast sections of rural and semi-urban population. With this measure, companies like, HUL, ITC and Bharti Airtel, can be appointed as BCs by banks while in turn these companies will provide banking services to the people.