Allowing correspondent banking – In January 2006, the Reserve Bank permitted banks to utilise the services of intermediaries in providing banking services through the use of business facilitators and business correspondents. The BC model allows banks to do “cash in – cash out” transactions at a location much closer to the rural population, thus addressing the last mile problem. 4.
Combination of branch and BC structure to deliver financial inclusion The idea is to have a combination of Brick and Mortar structure which will be helpful in extending financial inclusion especially in geographically dispersed areas.