What changed
Previously, a BC's retail outlet could only serve one bank. Now, RBI allows interoperability at the point of customer interface, meaning a single BC outlet can handle transactions for multiple banks, subject to online, CBS-based processing and IBA-prescribed procedures.
What it means for you
This expands financial inclusion by letting customers use any BC outlet for basic banking, reducing the need for multiple outlets. Banks must ensure their technology supports interoperability and that BC contracts are legally vetted. Banks retain full responsibility for BC actions, so robust oversight is critical.
What you must do
- Update BC agreements to allow interoperability and ensure legal vetting as per 2006 outsourcing guidelines.
- Verify your CBS platform can support online, interoperable transactions at BC outlets.
- Adopt IBA's standard operating procedures for BC interoperability once released.
- Strengthen monitoring of BC retail outlets to ensure compliance and manage risks.
Who it affects
All scheduled commercial banks including RRBs and Local Area Banks, Business Correspondents and their retail outlets/sub-agents, Customers in underbanked areas
Can a BC outlet now serve customers of any bank?
Yes, provided the bank that appointed the BC has technology supporting interoperability, transactions are online and CBS-based, and IBA's standard operating procedures are followed.
Does the bank still bear full responsibility for BC actions?
Yes, banks remain fully responsible for all actions of their BCs and their retail outlets or sub-agents, even with interoperability.