BC Recertification Rule: BCRC Seeks Grandfathering from RBI
Why in the news
Just days before a new certification requirement for Business Correspondents takes effect, their industry body has asked the RBI to exempt those who are already certified.
Key facts
- Rule source: RBI’s Draft Policy 2026 – Commercial Banks (Branch Authorisation), April 2026; BCs must obtain advanced IIBF certification; applicable from 1 July 2026.
- Petitioner: Business Correspondent Resource Council (BCRC), led by CEO D. Tripathy.
- Argument: forcing re-certification may trigger mass exits and invalidates certifications taken in good faith.
- Scale: BCs form the 1.17 million-strong frontline of the world’s largest on-the-ground financial inclusion effort; about 45% are affected.
| Issue | Figure |
|---|---|
| Certification fee | About ₹1,500 (roughly half a month’s income for many BCs) |
| Average commission now | ₹7,000-8,000 a month |
| Average commission five years ago | ₹10,000-11,000 a month |
| Demand on future syllabus changes | Minimum 36-month grandfathering window |
About Business Correspondents
- A bank’s representative giving last-mile services in remote, underserved areas; the model began under RBI in 2006.
- Tasks: cash deposits and withdrawals, account opening, AEPS transactions, recurring and term deposits, DBT payouts, loan recovery.
- Eligible as BCs: NGOs, Section 8 companies, civil society organisations, cooperatives, post offices, registered companies, CSCs, and individuals (since 2010).
About IIBF
- Set up in 1928 as Indian Institute of Bankers; renamed IIBF in 2002.
- Distance-learning body linked with 775+ banks and financial institutions; sole certifying agency for BC/BF under the RBI mandate.
Related inclusion data
- NSFI 2025-30: released 1 December 2025 by RBI Governor Sanjay Malhotra; cleared by the FSDC sub-committee at its 32nd meeting; aligned with the UN 2030 Agenda.
- Its five goals: universal access to affordable services, better last-mile access (strengthening BCs), a gender-sensitive approach, stronger customer protection and a better inclusion ecosystem.
- BSBDA: zero-balance account introduced by RBI in 2012; includes all PMJDY accounts; March 2025 count 72.4 crore (up 2.6%), balances ₹3.3 trillion (up 9.5%), mostly via the BC model.
- FI-Index: composite 0-100 score on access, usage and quality, released yearly by RBI; 67 in 2025, up 24.3% since 2021.
Exam angle
- Certifying body: IIBF; start date: 1 July 2026.
- BSBDA year: 2012; BC model: 2006.
- FI-Index 2025: 67.