Explanation:

Banking Correspondents (BCs) are individuals/entities engaged by a bank in India (commercial banks, Regional Rural Banks (RRBs) and Local Area Banks (LABs)) for providing banking services in unbanked/under-banked geographical territories. A banking correspondent works as an agent of the bank and substitutes for the brick and mortar branch of the bank.

Recently, the Reserve Bank of India (RBI) permitted banks to appoint non-banking finance companies (NBFCs) which do not accept deposits as their business correspondents (BCs), a move to extend banking services to remote areas.

Entities eligible to be appointed as BC are:

• NGOs/ MFIs set up under Indian Societies/ Trust Acts.
• Societies registered under mutually aided co-operative societies (MACs) Act or the Cooperative Acts of States.
• Section 25 companies.
• Post Offices
• Retired Bank employees
• Ex-Service men.
• Retired Govt. Employees.
• Individual kirana/ medical/fair price shop owners.
• Individual Public Call Office (PCO) operators.
• Agents of small savings schemes of Government of India/ Insurance Companies.
• Individual who own petrol pumps.
• Retired teachers.
• Authorized functionaries of well run Self Help Groups (SHGs) linked to banks.
• Individual member of Farmer•s Clubs.
• Individual operators of Rural Multipurpose kiosks/ Village Knowledge Centres
• Individuals/ proprietors/ owners who manage Agri Clinics/ Agri Business Centres.
• Retired Post Masters.
• Individuals such as auto dealers, tractor dealers and FMCG stockists.
• Insurance agents including of private insurance companies (IRDA certified) and postal agents.
• Individuals operating Common Services Centres (CSCs) established by Service Centre Agencies (SCAs) under the National e-Governance Plan (NeGP).
• For profit companies
• Any other individual considered suitable by the selection committee