It has been reported that the Apex Bank has permitted the non banking Finance companies to work as the business correspondents for the banks. With the aim of spreading financial inclusion NBFC will be allowed to offer limited services.
Till now there were provisions for the NBFC to work as the business correspondents, and provide any banking service on behalf of the banks. It was also informed that banks will allowed to take to engage non-deposit taking NBFCs (NBFCs-ND) as BCs. Banks need to ensure that NBFC-ND does not take up the restrictive practices such as offering savings or remittance functions only to its own customers or bundling of their services. The guidelines on allowing the NBFC- ND to work as BC will be reviewed taking into account recommendations of the Nachiket Mor Committee . It was also reported that banks should keep in mind the objectives of adequate oversight as well as provision of services to customers.