Even as the brick and mortar branch presence will expand, there will be a big emphasis on branchless banking based on the business correspondent (BC) model and leveraging on technology. In order to facilitate this, the Reserve Bank has also enlarged the types of entities that can be engaged as BCs.
Third, the Government of India has set-up two funds – the Financial Inclusion Fund for meeting the costs of developmental and promotional interventions towards financial inclusion, and the Financial Inclusion Technology Fund for meeting the costs of technology adoption. Each of these funds is worth Rupees 50bn.