Banks can now appoint any individual as BC

With the objective of ensuring greater financial inclusion and increasing outreach of the banking sector, RBI had earlier allowed banks to engage NGOs,micro finance agencies and self-help groups for identification of borrowers,processing of loan applications,helping recovery and such other support services.In 2006 the RBI
had allowed banks to use intermediaries as BCs for providing financial and banking services.Banks can now engage any individual including those operating common service centres to work as business correspondents(BCs).BCs conduct banking business as agents of banks at places other than the bank premises.The central bank will issue operational guidelines seperately.The business correspondents are paid commission fees as per RBIguidelines while banks follow KYC norms while undertaking banking activities through them. (BS 030510)