There are concerns arising out of allowing agents to accept cash repayments and deposits and that is why online biometric devices linked to bank accounts real time are preferable to offline models. Other risks that need to be addressed are operational risk, reputation risk, legal risks, liquidity risk, consumer protection, including resolution of consumer grievances as also those relating to AML.
Finally what are some of the lessons for leveraging existing branch network, IT and intermediaries for financial inclusion? Firstly, there should be clear focus on relatively unbanked and underserved areas rather than competing aggressively in already well served areas. There is a clear need to vastly increase the numbers served by existing branches for savings loan and remittances.