Banks have to make effective use of technology to provide banking services in remote areas. In addition to creating a large network of small branches in rural areas, the Reserve Bank has permitted banks to utilise the services of intermediaries in providing banking services through the use of 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. Leveraging on technology Penetrating banking services through the traditional brick and mortar model was expensive for banks.