In the BC-oriented model of financial inclusion, pursuit of higher volume of business for revenue maximization may dilute prudential requirements exposing the banks concerned to whole host of risks like reputation risk, strategic risk, compliance risk, operations risk besides the risk of contaminated asset portfolio.
In case of a cluster approach where a common BC could for many banks then there could be issue of concentration risk. These risks may get further aggravated if the monitoring systems of the banks are not strong enough to detect these red flags.