A retail outlet or an agent providing banking correspondent services can now provide services of more than one bank.

The Reserve Bank of India has permitted interoperability at point of customer interface of BCs.

Earlier, while BCs were allowed to tie up with more than one bank, their agents or retail outlets could offer products and services of only one bank.

A retail outlet or an agent can provide services of more than one bank provided the technology available with the bank, which has appointed the BC, supports interoperability.

This means that the transactions and authentication at such retail outlets or sub-agents of BCs should be carried out on-line; the transactions should be carried out on the Core Banking Solution (CBS) platform and the banks should follow the standard operating procedures to be advised by the Indian Banks' Association.

However, the BC or its retail outlet or sub-agent at the point of customer interface would continue to represent the bank which has appointed the BC.

This means though sub-agent or the outlet will have the branding of the bank which has appointed it, it can also offer cash transactions of other banks.

Technology provided by the RBI and the National Payment Corporation of India will allow this interoperability, similar to ATMs.

Experts feel that account opening services may not be allowed for multiple banks, as yet.

This move will benefit customers in rural and semi-urban areas, where there may be a shortage of agents and outlets.

According to Mr Sunil Kulkarni, Group President, Oxigen Services, BCs have been demanding this relaxation for some time. Until now, the first bank that tied up with the BC, enjoyed a kind of monopoly over the BC's network, he said.

“The BC model is the least expensive model for financial inclusion and this will help to expand it,” he said.

Oxigen Services has 1 lakh outlets and sub-agents. It is a BC for State Bank of India and YES Bank.

priyan@thehindu.co.in

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