The Q&A with Daniel Radcliffe "Payment banks could aid Jan Dhan Yojana over finish line" (December 10) correctly points out the weaknesses in India's financial inclusion efforts. These include a weak agent network, cash management issues, low remuneration for agents and so on - all leading to low transactions. However, the faith in payment banks appears misplaced, as by nature they will have an incentive to only operate along the select remittance corridors in search of volumes to remain viable, in the absence of any other sources of income.
Impressive claims of having opened millions of accounts in short periods may make good sound bytes at political rallies. But this entire effort, being based on a poor and ineffective edifice of agent networks, can easily crumble. The only solution to make the gains of the Jan Dhan Yojana more permanent is to focus on every agent, ensure that all their operational problems are solved and that transactions happen on a regular basis.
Y P Issar Karnal
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