The Reserve Bank of India's new business correspondent recertification rule is set to become operational from July 1, 2026, affecting approximately 45% of India's 1.17 million business correspondents. According to reports from Business Standard, the RBI's draft rule requires already certified agents to undergo advanced certification under the revised syllabus, potentially triggering mass exits from the world's largest boots-on-the-ground financial inclusion initiative. The RBI's Draft Policy 2026–Commercial Banks (Branch Authorisation) of April 2026 specifically mandates that business correspondents obtain advanced certification from the Indian Institute of Banking & Finance's (IIBF's) advanced BC certification. The Business Correspondent Resource Council (BCRC) has now sought grandfathering of this requirement, arguing that thousands of BCs who passed certification under valid syllabus should not be forced to re-certify under revised standards.
As reported by Business Standard, the certification tests cost approximately ₹1,500, representing half a month's earnings for many business correspondents. BCRC CEO D Tripathy emphasized that requiring re-certification under revised syllabus without grandfathering invalidates good-faith certifications. The organization has demanded that future IIBF syllabus revisions must be accompanied by a minimum 36-month grandfathering window. Banks are also being urged to take responsibility for both training and certification processes to reduce financial burden on agents. The fear is that the new approach may prompt the opposite of its intended effect: a mass exit of agents even as the central bank seeks to expand the network.
According to Business Standard, the National Strategy for Financial Inclusion: 2025-30 released in December 2025 sought to strengthen the BC network while advocating for fair remuneration. However, compensation has declined significantly - average monthly commission fell from ₹10,000-11,000 to ₹7,000-8,000 over the past five years. The report indicates that 35% of banking agents receive less than ₹5,000 per month, while 15-20% earn less than ₹3,000 per month, making the profession increasingly unattractive. This poor remuneration is contributing to agent retention challenges in major cities and towns, with the BC channel being the world's largest boots-on-the-ground financial inclusion initiative facing significant compensation pressures.
As reported by Business Standard, business correspondents face competition from retail delivery platforms including Swiggy, Zomato, Blinkit and Amazon. The report notes that poor remuneration to BC field agents and better payout terms offered to delivery riders by e-commerce and quick commerce firms are making it increasingly difficult to retain BCs in urban areas. This competitive pressure is particularly challenging for the financial inclusion sector that relies heavily on last-mile banking services. A February 2022 white paper by Indicus Foundation noted that despite efforts, mandates, and deadlines by regulators, lakhs of BCs continue to service those at the bottom of the pyramid without adequate training or official certification, highlighting the ongoing challenges in the sector.
According to the Report on Trend and Progress of Banking in India FY25, basic savings bank deposit accounts (BSBDAs) increased by 2.6% to 72.4 crore at end-March 2025, while aggregate balance in these accounts rose 9.5% to ₹3.3 trillion. As reported by Business Standard, a majority of BSBDAs continue to be channelized through the BC model, indicating their effectiveness at grassroots level. Despite regulatory efforts, a February 2022 white paper by Indicus Foundation noted that lakhs of BCs continue to service those at the bottom of the pyramid without adequate training or official certification, highlighting the ongoing challenges in the sector. The BC channel remains the world's largest boots-on-the-ground financial inclusion initiative, making the upcoming recertification requirements particularly significant for India's financial inclusion goals.
