The rollout of the agent banking model is mainly aimed at addressing the challenges of high transaction costs arising from the lack of proximity to financial services and putting up brick and mortar branches where they may not be economical in all the corners where customers are to be found.
Conclusion With the policy rate more likely to be constrained by the lower bound, the core challenge facing the current generation of central bankers is different than the last generation. The authors of the report emphasize the importance of deploying an expanded toolkit proactively, avoiding costly delays, and communicating clearly to the public.