This presentation highlight show a 1%DBT Commission Could Undermine India’s Financial Inclusion Efforts

The blog recommends that the government set an adequate rural DBT commission rate of at least 3% for the first few years of PMJDY.

This PB focuses on last-mile banking agent (Bank Mitr) networks that will disburse DBT payments and enable customers to access their bank accounts.

Bangladesh has created many unique systems for agent network management which are yielding world-class results especially with regards to liquidity management.  However, transaction volumes and profits are low compared to East Africa and support structures are still developing. The research is based on 2,490 nationally representative agent interviews, carried out between March and April 2014. […]

Our earlier blogs focused on how OTC was growing rapidly but the key stakeholders were not satisfied. The question we have been asked often – is there a way out?

Preceding the sentiments presented in the previous blog on over the counter (OTC), our interactions with various stakeholders indicate that not all are actually happy.

We are seeing that MNOs and banks are increasingly trying to go the OTC route in the developing world – look at Bangladesh, Pakistan, Ghana and India. The burning question is, why? There could possibly be several reasons, the needs of the MNOs, the needs of the banks, and the needs of the customers.