Not all forms of inclusion can be made profitable, but we should give banks the freedom to try new approaches, perhaps drawing in other institutions that can traverse the last mile to the underserved where necessary. The RBI will come out with new relaxations on business correspondents shortly.
Also, some of the entities that become payments banks may be very well suited to support or substitute commercial banks in reaching remote areas. In sum then, we can increase competition in the banking sector while, at the same time, strengthening banks by reducing the burden of obligations on them.