---
title: "Business Correspondent Model: RBI Banking Agents"
description: "The Business Correspondent Model allows RBI-regulated banks to offer services through retail agents, enhancing financial inclusion across India."
url: "https://modeldiplomat.com/learn/glossary/business-correspondent-model"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- The Business Correspondent Model is an RBI-authorised framework permitting banks to deliver banking services through retail agents at locations beyond conventional branches.
- What is the difference between a Business Correspondent and a Business Facilitator?
- Who is liable for the acts of a Business Correspondent?
- How does the Business Correspondent Model relate to PMJDY and the JAM trinity?
- Can a Business Correspondent charge customers for transactions?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

The Business Correspondent Model is an RBI-authorised framework permitting banks to deliver banking services through retail agents at locations beyond conventional branches.

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## Timeline

1. 25 January 2006

   The Business Correspondent Model originates in the Reserve Bank of India's circular of (RBI/2005-06/288), which permitted banks to engage intermediaries—Bus…

2. 28 September 2010

   The bank selects an eligible BC—the 2006 framework initially restricted eligibility to NGOs, Section 25 companies, post offices, and retired bank employees,…

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Example

In August 2014, the Government of India launched the Pradhan Mantri Jan Dhan Yojana, relying on a "Bank Mitra" Business Correspondent network to open over 500 million basic savings accounts across unbanked rural India by 2024.

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