Given the literacy level of the rural population, availability of trained manpower in the villages to ensure that transactions are carried out in a user friendly manner in the local language and that the customers smoothly transit from assisted model to self-service model in using technology, wherever feasible (e.g. use of ATMs/mobile/internet banking).
The basic notion underlying the CFR is a comparison between an estimate of the funding of the bank that is stable and can be assumed to stay in place for at least one year (‘core funding’), and the core lending business of the bank that needs to be funded on a continuing basis. The CFR is currently applied to locally incorporated banks.