Dvara Analysis Weblog | An Agent Success Framework – Half I: Why should agent networks supply entry to dependable CICO providers?


Aishwarya Narayan

This collection of weblog posts paperwork Dvara Analysis’s ongoing work on the position of enterprise correspondent (BC) networks in offering cash-in cash-out providers throughout the size and breadth of India.  

The enterprise correspondent (BC) community has develop into the spine of last-mile supply programs in India, connecting residents to essential social safety and monetary inclusion packages. Brokers assist prospects withdraw and deposit cash in their very own financial institution accounts, most significantly in places the place conventional modes of cash-in cash-out (CICO) reminiscent of ATMs and financial institution branches aren’t possible. This operate of BC networks has been pivotal in offering emergency help throughout the pandemic. Brokers assisted low-income people everywhere in the nation by facilitating withdrawals of the emergency social safety help despatched to citizen financial institution accounts.[1] The Reserve Financial institution of India (RBI) posits that, in rural places, entry to banking providers is predominantly offered by means of BC brokers.[2] It’s obvious that BC networks are vital to the success of monetary inclusion and social safety security nets in India. Accordingly, it turns into crucial to judge the standard of infrastructure that enables folks to entry the cash sitting in their very own financial institution accounts.

Extra importantly, as extra formalization and digitalization of monetary providers turns into a day-to-day actuality for India’s low-income households, their easy accessibility to their very own cash should be handled as non-negotiable. If such entry is unreliable or dangerous, the backlash when it comes to lack of belief will push the inclusion agenda backwards by a few years. And on this sense, the banking system turns into a real utility supplier, that of offering entry to personal funds when and the place the proprietor of the account wants it.

On this weblog publish, we collate proof of the varied causes that stop the BC community from providing entry to dependable CICO providers everywhere in the nation. We depend on a mixture of proof within the type of qualitative case research, survey outcomes, and secondary sources. We establish following main causes of friction for the client of their interactions with BC networks:

  1. Density of entry factors

Entry to CICO providers in lots of distant and rural places continues to be an issue, regardless of the preliminary motivation behind BC community being to make banking accessible to all. The International Findex Database 2021 reviews that roughly 43% of unbanked Indian adults cited distance to a monetary establishment as a barrier to account possession.[3] A nationally consultant survey exhibits that 52.6% of BC customers who confronted some difficulty throughout the money withdrawal course of reported that the cash-out level was far-off from them, indicating that entry to BC brokers continues to be an issue.[4]

Whereas the RBI states that the variety of BC retailers is growing in each city and rural places[5], information on the quantity and unfold of BC brokers within the nation is just not made publicly accessible. This makes it troublesome to determine the character and extent of the entry downside within the nation, regardless of proof indicating that it does exist.

  1. Operational points

Even when a buyer can bodily entry a BC agent to withdraw/deposit money, there could also be operational points that hamper the success of the transaction. Between January and July 2020, 46% of households who confronted some points throughout their makes an attempt to withdraw money from their accounts cited transaction failures which precipitated failed withdrawal makes an attempt.[6] A survey by Libtech (2020) of 2000 staff below the Mahatma Gandhi Nationwide Rural Employment Assure Act (MGNREGA) discovered that 40% of CSP/BC customers confronted biometric authentication failure not less than as soon as of their final 5 transactions.[7] Different estimates place the biometric authentication failure price within the Aadhaar-enabled  Funds System (AePS) at 19-20%.[8] Transactions may additionally fail as a result of failure of inner banking programs or an inoperative swap.[9]

From the client’s perspective, failed transactions may cause quite a lot of nervousness and uncertainty, along with tangible prices. As an illustration, prospects should re-visit the BC level a number of instances in pursuit of a profitable transaction, which means misplaced wages and journey prices. Additional, in conditions whereby the client’s account has been efficiently debited however the transaction is unsuccessful, prospects should wait till the cash is mechanically reversed into their account.[10]

  1. Fraudulent exercise and opportunistic habits:

Case Examine [11] 1:

Illiterate and feminine prospects in a group of migrant households in Madhya Pradesh observed unfamiliar transactions of their financial institution accounts. It was discovered that the customer support level (CSP) operator was skimming money from buyer accounts. The shoppers suspected that the operator added his personal fingerprint to the financial institution accounts as a joint accountholder for the accounts he opened. The operator would additionally get hold of biometric authentication greater than as soon as when approached for withdrawal transactions.

Case Examine 2:

A migrant laborer hailing from Uttar Pradesh and residing in Noida, needed to use for monetary help of INR 55,000 as per the Kanya Vivah Sahayta Yojana below the Constructing and Building Staff (BOCW) Act. She utilized for the scheme by means of a Widespread Service Centre (CSC)[12]

, however the utility was rejected by the Labour Division. The CSC operator prompt she strategy the division immediately. Upon doing so, she was requested to pay Rs. 5000 to acquire the profit, and one other Rs. 5000 after profitable receipt into her checking account.

Over the previous years, a number of media reviews and case research have emerged of consumers being defrauded throughout AePS transactions. The severity of those circumstances could vary from being disproportionately charged for AePS transactions[13], receiving just some a part of the withdrawn quantity, or being requested to supply biometric authentication a number of instances for illegitimate transactions, to extra flagrant violations reminiscent of graft, and large-scale fraud utilizing illegally obtained biometric data. These buyer experiences aren’t common and should range by the agent’s enterprise mannequin and/or location.

Click on right here to entry the Half II and Half III of the collection.

[1] As a part of the Pradhan Mantri Garib Kalyan Yojana (PMGKY) introduced by the Ministry of Finance, ex-gratia money transfers have been deployed for ladies Pradhan Mantri Jan Dhan Yojana (PMJDY) account holders and beneath poverty line (BPL) pensioners, and free ration was introduced for roughly 80 crore poor residents.

September 2021. Retrieved from

[3] World Financial institution (2021). The International Findex Database 2021: Monetary Inclusion, Digital Funds, and Resilience within the Age of COVID-19. Retrieved from

[4] Outcomes from the Dvara-CMIE Survey on Entry to Money and Coping Mechanisms throughout COVID-19, a nationally consultant survey.

[5] Reserve Financial institution of India. 2021.  RBI Bulletin September 2021. Retrieved from

[6] Outcomes from the Dvara-CMIE Survey on Entry to Money and Coping Mechanisms throughout COVID-19, a nationally consultant survey.

[7] LibTech India. 2020. Size of the Final Mile. Retrieved from content=Inpercent20thispercent20projectpercent2Cpercent20people’spercent20experiences,%2Cpercent20Rajasthanpercent2Cpercent20andpercent20Andhrapercent20Pradesh.

[8] Financial Instances. 2020. Facial recognition, iris scans could also be used for welfare scheme payouts. Retrieved from

[9] Raghavan, M. 2020. Transaction Failures within the Aadhaar enabled Cost System. Retrieved from

[10] Whereas the NPCI mandates an automated reversal of funds into the client’s account inside T+5 days, prospects will not be conscious of those guidelines, or could not belief the BC agent.

[11] These case research are sourced from Dvara Analysis’s upcoming undertaking (Voice of Aggrieved Clients) documenting the genuine experiences of consumers of digital monetary providers.

[12] Whereas CSCs aren’t strictly enterprise correspondents, many BCs additionally maintain CSC licenses.

[13] Whereas AePS transactions are speculated to be free, typically costs are bilaterally set between the agent and buyer.

Cite this weblog:


Narayan, A. (2023). An Agent Success Framework – Half I: Why agent networks should supply entry to dependable Money-in Money-out (CICO) providers? Retrieved from Dvara Analysis.


Narayan, Aishwarya. “An Agent Success Framework – Half I: Why agent networks should supply entry to dependable Money-in Money-out (CICO) providers?” 2023. Dvara Analysis.


Narayan, Aishwarya. 2023. “An Agent Success Framework – Half I: Why agent networks should supply entry to dependable Money-in Money-out (CICO) providers?” Dvara Analysis.

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