Brazil was the early leader in agent banking through the large-scale introduction of “banking  10  Report of the Sub Committee of the Central Board of Directors of the Reserve Bank of India to Study Issues and Concerns in the MFI Sector (Chairman: Shri Y H Malegam), January 2011 (Malegam Committee).
The remaining14 banks were found to be in a sound financial state and did not require the CBN to take any action. The second approach was to carry out diagnostic audit through independent consultants. The report of the audit exercise revealed greater magnitude of weak financial condition of the nine banks. All of them were “technically” insolvent with significant negative asset value.