No more bank clones

The Reserve Bank of India has for the last several years persistently pursued financial inclusion as a core agenda. However, it continues to remain a challenge. The traditional banking models in India have failed to penetrate the low-income and self-employed segment for various reasons: non-accessibility; the lack of well-defined revenue streams; the informal nature of the market; a lack of documentation and of a history of credit behaviour or formal savings; the high cost structure of full-service banks; and the high risks associated with this segment.

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