The monthly newsletter from the Indicus Centre for Financial Inclusion documents the latest news and views in the financial inclusion space, to provide a knowledge base that will help build understanding around how to accelerate the poor’s access to high-quality financial services.
The lead stories this month focus on bank managed agent networks for the business correspondent model. These include a) three India Focus Notes brought out by MicroSave that examine the case for banks to manage their own agent networks, the challenges that arise and the ways to effectively implement bank supervised agent networks and b) a paper on the experience in Columbia where subsidy schemes were put in to incentivise building of agent networks especially for government payments in remote locations. These papers show that there are considerable challenges to be overcome for bank managed agent networks and subsidies by the government are effective to some extent.
MicroSave India Focus Notes on Bank Managed Agent Networks
Three Focus Notes by MicroSave: No. 101 examines the case for bank managed agent networks, No. 102 puts forth the challenges for the banks in managing such networks while No. 103 explores how to effectively implement a bank supervised agent network.
Who Should Pay for Banking Infrastructure in G2P Programs?
A blog post in CGAP giving insights from the experience in Columbia which had three subsidy schemes to incentivize payment providers to build their agent networks in challenging locations. While public sector banks took the lead, private banks held out initially in participating in these schemes but became interested over time once scale built up.
Section I: Policy – the latest from India’s policymakers
Budget 2013-2014: Para 86 and Para 114
Speech of P. Chidambaram, Minister of Finance, February 28, 2013
Direct Benefit Transfer – Preparation of Board Approved Implementation Plan
Department of Financial Services, Ministry of Finance, February 18, 2013
International Seminar on Principles of Financial Market Infrastructures and Innovations in Retail Payments
Shri. G. Padmanabhan, Executive Director, RBI, February 15, 2013
Banking as a Fundamental Right of People!
Dr. K.C. Chakrabarty, Deputy Governor, RBI, February 9, 2013
Section II: News and Views Digest – the latest from India and abroad
India's 'Aadhar' a step to ensure financial inclusion: FATF
Towards greater financial inclusion: MasterCard, Beam announce alliance to reach 14 million new customers
Business correspondents to be paid for cash transfers
Financial inclusion must for new banks
Financial inclusion should be a bank-led model: RBI
A case for converting India Post into a bank
Cash transfer only if 90% locals have bank access: Sonia
Inclusion drive taking baby steps
Credit culture needs a new direction
Financial inclusion must for low-income households
Cheque Them Out
FATF updates its Guidance on Anti-Money Laundering and Terrorist Financing Measures and Financial Inclusion
Implementing mobile money innovations to deepen financial inclusion: Lessons from successful innovations in Kenya
Account Limits And Flexibility, Key To Financial Inclusion
Section III: Research – surveys and studies on expanding access to financial services
Mobile Money - Influencers of Success
Raunak Kapoor, Shivshankar V., Denny George, Alphina Jos, Mukesh Sadana, Ritesh Dhawan, Soumya Harsh Pandey, MicroSave, February 2013
Can Mobile Money Be Used To Promote Savings? Evidence From Northern Ghana
Jenny C. Aker and Kimberley Wilson, Tufts University, Swift Institute Working Paper No. 2012-003, January 2013