The Reserve Bank of India (RBI) has released draft guidelines proposing a new structure for business correspondents (BCs) and branch authorisation. The guidelines categorize BCs into two types: Business Correspondent-Banking Outlets (BC-BOs) and Business Correspondent-Banking Touchpoints (BC-BTs). The existing Business Facilitator model will be phased out, requiring all entities to transition by September 30, 2026. The amendments aim to enhance the formal banking presence, particularly in rural areas, by redefining banking outlets to include BC-BOs. The RBI has also revised the definition of unbanked rural centres, excluding locations with a bank branch or BC-BO. Foreign bank subsidiaries will face stricter rules, needing RBI approval to open in sensitive areas. The guidelines mandate that banks ensure proper governance and consumer protection, including clear service disclosures and grievance redressal mechanisms at BC outlets. Additionally, BCs will undergo mandatory training and certification within nine months of commencing operations. The RBI aims to strengthen oversight and operational efficiency with these new norms.