Aviation minister says has asked states to cut jet fuel tax

Tags: News
The Reserve Bank of India today permitted non-banking finance companies to act as business correspondents (BCs) of banks, allowing them to offer limited services with the aim of spreading financial inclusion.

"It has been decided that banks will be permitted to engage non-deposit taking NBFCs (NBFCs-ND) as BCs," the RBI said in a notification.

So far, NBFCs could not be appointed as BCs, which provide limited services on behalf of banks in unbanked areas.

The RBI said there should be a contractual arrangement between a bank and an NBFC-ND to ensure that possible conflicts of interest are taken care of.

Banks must ensure the NBFC-ND does not adopt restrictive practices such as offering savings or remittance functions only to its own customers or bundling of their services, it said.

Banks may continue to take measures to address possible reputational risks arising out of the appointment and functioning of BCs, it added.

To provide operational flexibility to banks and in view of technological developments in the sector, the distance criteria for BCs have been removed, it said.

However, when formulating the board approved policy for engaging BCs, banks should keep in mind the objectives of adequate oversight as well as provision of services to customers while deciding how to modify extant distance criteria, it added.

The RBI said the existing guidelines on the appointment of BCs were reviewed taking into account recommendations of the Nachiket Mor Committee.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • But what’s the big deal about Modi’s first hundred days?

    That Indians believe more in symbolism than substance is a fact that is well acknowledged and chronicled.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Urs Schöttli

West Asia turmoil worries east Asia

From Beijing to Jakarta, from Manila to Tokyo, east Asian ...

Parvez Imam

Sowing the seeds of love for hatred

No wonder we have a whole lot of talking going ...

Dharmendra Khandal

Time to protect our endangered wildlife species

After 65 million years of existence, the earth’s biodiversity is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture