RBI Branch Authorisation Amendment Directions 2026 - Consultation
Summary
The Reserve Bank of India has issued seven draft Amendment Directions (2026) covering branch authorisation for Commercial Banks, Small Finance Banks, Payments Banks, Local Area Banks, Regional Rural Banks, Urban Co-operative Banks, and Rural Co-operative Banks. The proposals define three types of delivery points (branch, BC-BO, BC-BT), simplify Business Correspondent eligibility criteria, subsume Business Facilitators under the BC model, and standardise BC commission/remuneration structures. Public comments are invited until May 5, 2026.
What changed
The draft directions introduce a unified framework for classifying banking service delivery points into three categories: traditional branches, Business Correspondent-Banking Outlets (BC-BOs), and Business Correspondent-Banking Touchpoints (BC-BTs). The proposals eliminate the separate Business Facilitator model by subsuming it under the BC framework, while simplifying eligibility requirements for engaging BCs. Commission and remuneration structures for BCs will be standardised across all bank categories.
Affected banks across all seven categories must prepare for enhanced BC engagement frameworks, particularly for last-mile financial inclusion in rural and underserved areas. Banks should review existing BC and BF arrangements, assess the impact of standardised commission structures on profitability, and update compliance policies to reflect the new delivery point classifications. Regulated entities should actively participate in the consultation to influence the final framework.
What to do next
- Review the seven draft Amendment Directions applicable to your banking category
- Assess how the new delivery point definitions (branch, BC-BO, BC-BT) affect your branch network strategy
- Submit comments via Connect 2 Regulate or email by May 5, 2026
- Evaluate Business Correspondent engagement and commission structures for compliance with standardised requirements
Source document (simplified)
Press Releases
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| Date : Apr 06, 2026 | |
| RBI invites comments on the Draft “Reserve Bank of India (Branch Authorisation) Amendment Directions, 2026” | |
| | Business Correspondents have been functioning as critical enablers of last mile access to financial services, particularly in respect of underserved, rural, and remote locations. Reserve Bank had set up a committee, consisting of officials from Reserve Bank, DFS, IBA and NABARD, to comprehensively examine their operations and make suitable recommendations for enhancing their efficiency.
Based on the committee’s recommendations and in pursuance of the announcement made in the Statement on Developmental and Regulatory Policies dated February 06, 2026, the Reserve Bank of India (RBI) has today issued the following Draft Amendment Directions for public comments:
1. [Reserve Bank of India (Commercial Banks – Branch Authorisation) Amendment Directions, 2026](https://www.rbi.org.in/scripts/bs_viewcontent.aspx?Id=4950)
2. [Reserve Bank of India (Small Finance Banks – Branch Authorisation) Amendment Directions, 2026](https://www.rbi.org.in/scripts/bs_viewcontent.aspx?Id=4951)
3. [Reserve Bank of India (Payments Banks – Branch Authorisation) Amendment Directions, 2026](https://www.rbi.org.in/scripts/bs_viewcontent.aspx?Id=4952)
4. [Reserve Bank of India (Local Area Banks – Branch Authorisation) Amendment Directions, 2026](https://www.rbi.org.in/scripts/bs_viewcontent.aspx?Id=4953)
5. [Reserve Bank of India (Regional Rural Banks – Branch Authorisation) Amendment Directions, 2026](https://www.rbi.org.in/scripts/bs_viewcontent.aspx?Id=4954)
6. [Reserve Bank of India (Urban Co-operative Banks – Branch Authorisation) Amendment Directions, 2026](https://www.rbi.org.in/scripts/bs_viewcontent.aspx?Id=4955)
7. [Reserve Bank of India (Rural Co-operative Banks – Branch Authorisation) Amendment Directions, 2026](https://www.rbi.org.in/scripts/bs_viewcontent.aspx?Id=4956)
The Draft Amendment Directions propose to (i) define three types of delivery points viz. branch, Business Correspondent- Banking Outlet (BC-BO) and Business Correspondent- Banking Touchpoint (BC-BT) (ii) simplify the eligibility criteria for engaging the BCs (iii) subsume Business Facilitators(BFs) under BC model (iv) bring uniformity in the BC ecosystem in respect of payment of commission/ remuneration.
The comments / feedback on the draft Amendment Directions may be submitted by the regulated entities and members of public / other stakeholders on or before May 05, 2026 through the following channels:
- the ‘ Connect 2 Regulate ’ section on the website by following the corresponding hyperlink provided against each document in the page where they are hosted; or
- by email with the subject line ‘Feedback on (full name of the draft Amendment Directions (including the type of Regulated Entity))’. (Brij Raj) Chief General Manager
Press Release: 2026-2027/27 | | Business Correspondents have been functioning as critical enablers of last mile access to financial services, particularly in respect of underserved, rural, and remote locations. Reserve Bank had set up a committee, consisting of officials from Reserve Bank, DFS, IBA and NABARD, to comprehensively examine their operations and make suitable recommendations for enhancing their efficiency.
Based on the committee’s recommendations and in pursuance of the announcement made in the Statement on Developmental and Regulatory Policies dated February 06, 2026, the Reserve Bank of India (RBI) has today issued the following Draft Amendment Directions for public comments:
- Reserve Bank of India (Commercial Banks – Branch Authorisation) Amendment Directions, 2026
- Reserve Bank of India (Small Finance Banks – Branch Authorisation) Amendment Directions, 2026
- Reserve Bank of India (Payments Banks – Branch Authorisation) Amendment Directions, 2026
- Reserve Bank of India (Local Area Banks – Branch Authorisation) Amendment Directions, 2026
- Reserve Bank of India (Regional Rural Banks – Branch Authorisation) Amendment Directions, 2026
- Reserve Bank of India (Urban Co-operative Banks – Branch Authorisation) Amendment Directions, 2026
Reserve Bank of India (Rural Co-operative Banks – Branch Authorisation) Amendment Directions, 2026
- The Draft Amendment Directions propose to (i) define three types of delivery points viz. branch, Business Correspondent- Banking Outlet (BC-BO) and Business Correspondent- Banking Touchpoint (BC-BT) (ii) simplify the eligibility criteria for engaging the BCs (iii) subsume Business Facilitators(BFs) under BC model (iv) bring uniformity in the BC ecosystem in respect of payment of commission/ remuneration.
- The comments / feedback on the draft Amendment Directions may be submitted by the regulated entities and members of public / other stakeholders on or before May 05, 2026 through the following channels:
the ‘ Connect 2 Regulate ’ section on the website by following the corresponding hyperlink provided against each document in the page where they are hosted; or
by email with the subject line ‘Feedback on (full name of the draft Amendment Directions (including the type of Regulated Entity))’.
(Brij Raj)
Chief General Manager
Press Release: 2026-2027/27 |
| Business Correspondents have been functioning as critical enablers of last mile access to financial services, particularly in respect of underserved, rural, and remote locations. Reserve Bank had set up a committee, consisting of officials from Reserve Bank, DFS, IBA and NABARD, to comprehensively examine their operations and make suitable recommendations for enhancing their efficiency.
Based on the committee’s recommendations and in pursuance of the announcement made in the Statement on Developmental and Regulatory Policies dated February 06, 2026, the Reserve Bank of India (RBI) has today issued the following Draft Amendment Directions for public comments:
- Reserve Bank of India (Commercial Banks – Branch Authorisation) Amendment Directions, 2026
- Reserve Bank of India (Small Finance Banks – Branch Authorisation) Amendment Directions, 2026
- Reserve Bank of India (Payments Banks – Branch Authorisation) Amendment Directions, 2026
- Reserve Bank of India (Local Area Banks – Branch Authorisation) Amendment Directions, 2026
- Reserve Bank of India (Regional Rural Banks – Branch Authorisation) Amendment Directions, 2026
- Reserve Bank of India (Urban Co-operative Banks – Branch Authorisation) Amendment Directions, 2026
Reserve Bank of India (Rural Co-operative Banks – Branch Authorisation) Amendment Directions, 2026
- The Draft Amendment Directions propose to (i) define three types of delivery points viz. branch, Business Correspondent- Banking Outlet (BC-BO) and Business Correspondent- Banking Touchpoint (BC-BT) (ii) simplify the eligibility criteria for engaging the BCs (iii) subsume Business Facilitators(BFs) under BC model (iv) bring uniformity in the BC ecosystem in respect of payment of commission/ remuneration.
- The comments / feedback on the draft Amendment Directions may be submitted by the regulated entities and members of public / other stakeholders on or before May 05, 2026 through the following channels:
the ‘ Connect 2 Regulate ’ section on the website by following the corresponding hyperlink provided against each document in the page where they are hosted; or
by email with the subject line ‘Feedback on (full name of the draft Amendment Directions (including the type of Regulated Entity))’.
(Brij Raj)
Chief General Manager
Press Release: 2026-2027/27 | |
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