There has to be a multi-pronged, holistic approach that could include enhancing financial literacy to build up demand, capacity building and mindset changes of bank staff/ BCs, development of need based innovative products, alternate delivery channels through BCs and tie-ups with NGOs to ensure socially responsible delivery of services with consumer protection.
Nominally high regulatory capital ratios -- even risk-based capital ratios that are 50 or 100 percent higher than the minimums -- are no longer indicators of bank soundness. Meanwhile, however, some of our largest and most sophisticated banks have been getting ahead of the regulators and doing the two things one must do in order to properly manage risk and determine capital adequacy.