What will make us winnersExtremely low cost oftransaction & servicing

Rapidly scalable model

This is where we all wish to

be!!!

This is where we all wish to

be!!!

Path to the “right” corner• Customer friendly processes

• Inclusive technology

• Leverage infrastructure - minimal CAPEX

• Teach less - leverage behavior

• Adequate controls & safeguards

Concerns of RBI• Safety of depositors’ money

• Discourage fly-by-night operators

• Denial of service

• “Non-banks don’t understand risk”

• Anti Money Laundering / Combating Financing for Terrorism

Regulations

• Non - profit entity as Business Correspondent• 5/10/15km - 200km and no branch• Subagents - leveraging the trusted “kirana” shop• Passbook / statements - OPEX / on-demand• KYC - balance with controls / limits• Encryption - SIM change / application-on-phone• Encourage branchless banking• Deposit - bank account or cash card or informal

Mood of the Practitioners• Regulations should not be prescriptive

• Let banks, service providers innovate

• Should allow for sustainable model to evolve

• Spirit needs to be conveyed beyond the letter of law - relaxed KYC!!!

• Level playing field