Governments – Central and State; Banks, Co-op Banks, RRBs  5)  Use of PACs and Primary Cooperatives as BCs: PACs penetration in rural areas is far more than that of bank branches. Banks may make use of this largest rural network of cooperatives as business correspondents. Recent NABARD circular also envisaged that PACs can be utilized as BCs for CCBs/SCBs.
To that end, we need better regulation and supervision of banks and other financial institutions. Well-designed regulation would provide banks with the right incentives to choose their business model, scope, and size efficiently to best serve the society. Before the crisis, financial regulation was too lax and the supervision of financial institutions too fragmented.