## RCM on Business Facilitator (BF) & Business Correspondent (BC)
### The RCM Entries
| Service | Recipient | Mechanism |
|---|---|---|
| Services by Business Facilitator (BF) | Banking Company | RCM |
| Services by Agent of Business Correspondent (BC) | Business Correspondent | RCM |
### Combined Analysis with Exemption (Rural vs Urban Branch)
| Service Flow | Rural Branch (Recipient) | Urban Branch (Recipient) |
|---|---|---|
| BC → Banking Company | Exempt | Taxable under FCM (by BC) |
| BF → Banking Company | Exempt | Taxable under RCM (by Bank) |
| Agent of BC → BC | Exempt | Taxable under RCM (by BC) |
| Agent of BF → BF | Exempt | Taxable under FCM (by Agent) |
### Key Distinction
- BC services to banking company → FCM (when not exempt)
- BF services to banking company → RCM (when not exempt)
- The agent of BC follows RCM (because recipient is BC)
- The agent of BF follows FCM
### Memory Aid
For Urban branch services: BF and Agent-of-BC are under RCM; BC and Agent-of-BF are under FCM.