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RBI Rejected IMG Proposal

The Reserve Bank of India recently rejected a proposal from an Inter-Ministerial Group (IMG) to relax the stipulation that business correspondents (BC) should be within 30 km distance of a branch.

Oct 9, 2010 17:44 IST

The Reserve Bank of India recently rejected a proposal from an Inter-Ministerial Group (IMG) to relax the stipulation that business correspondents (BC) should be within 30 km distance of a branch. At the first meeting of the monitoring group chaired by the Cabinet Secretary to consider the recommendations made by the IMG on usage of mobile phones to deliver financial services, the decision was revealed. The IMG report that suggested simplified know-your-customer (KYC) requirements and permitted “for profit” corporate entities to function as BCs was accepted by the Committee of Secretaries in April 2010. Following which the Prime Minister had directed the constitution of a monitoring group to oversee implementation of the project.