RBI Invites Comments on Draft Branch Authorisation Amendment Directions 2026

The Reserve Bank of India has invited comments on the Draft “Branch Authorisation Amendment Directions, 2026,” aimed at strengthening financial access across India. The draft follows recommendations from a committee comprising officials from RBI, DFS, IBA, and NABARD, which reviewed Business Correspondent operations.

The central bank stated that these changes align with the policy direction announced on February 06, 2026. The initiative reflects a broader effort to improve banking outreach in underserved and remote regions.

Draft Amendment Directions Issued

The RBI has released draft amendment directions covering a wide range of regulated entities within the banking system. These include commercial banks, small finance banks, payments banks, local area banks, regional rural banks, and both urban and rural co-operative banks.

The proposed amendments aim to standardise branch authorisation norms across these institutions. The framework is currently open for public consultation before finalisation and implementation.

Focus on Business Correspondent Model

The draft amendments place significant emphasis on strengthening the Business Correspondent model as a key delivery channel. Business Correspondents have been instrumental in extending banking services to rural, remote, and underserved populations.

The RBI’s proposal seeks to improve their operational efficiency and reliability within the financial system. This focus highlights the continued importance of last-mile connectivity in achieving financial inclusion goals.

Key Proposals in the Draft Framework

The draft introduces structural changes to the classification of banking delivery points across institutions. It proposes defining three categories, namely branches, Business Correspondent-Banking Outlets, and Business Correspondent-Banking Touchpoints.

The framework also simplifies eligibility criteria for engaging Business Correspondents across entities. Additionally, it seeks to integrate Business Facilitators into the Business Correspondent model to streamline operations and reduce overlap.

Standardisation and Operational Changes

The RBI aims to bring uniformity in the commission and remuneration structure for Business Correspondents across regulated entities. This move is expected to enhance transparency and consistency within the ecosystem.

The draft also attempts to reduce fragmentation by aligning operational practices across different banking segments. These changes are intended to strengthen governance and improve service delivery standards.

Read More: RBI Makes CKYCR Mandatory for Merchant Onboarding.

Conclusion

The draft Branch Authorisation Amendment Directions, 2026, represent a structured effort to enhance the banking outreach framework in India. The focus on Business Correspondents underlines their role in expanding financial services to underserved regions.

Standardisation measures are expected to improve efficiency and consistency across institutions. Stakeholders have been invited to submit feedback on the draft directions by May 05, 2026.

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