The Business Correspondent (BC) model is also facing problems on account of lack of proper ICT-based business models and, amongst other things, due to issues related to remuneration of the BCs, their training and orientation, product mix and volume of transactions handled by them, management of cash and the risks associated with outsourced models.
Even ATMs and internet banking have their limitations when it comes to penetration in rural areas. I need to mention here that our recent guidelines on deployment of White Label ATMs (WLAs) has a very distinct slant towards the deployment of ATMs in the smaller tier 3 to 6 centres.