Initially there was a restriction on the bank in recovering any charge from the customer for such doorstep service as it was expected that the savings in cost of setting up a branch would be sufficient incentive.
Subsequently, following a comprehensive review of the business correspondent guidelines, we have relaxed this condition and banks are now allowed to recover reasonable charges from the customer for providing the service. Branchless banking illustrates an area where there have been progressive relaxations of the regulations for furthering penetration while ensuring consumer protection. Deregulation of interest rates for small loans 18.