Last-mile banking network struggling due to rising costs and low commissions

The last-mile banking network is currently facing difficulties due to rising costs and low commissions received on banking services. Agents working to deliver financial services at the last-mile level are struggling amidst these financial challenges.

According to a Business Standard report, improving the compensation system is essential to resolve this issue. The NSFI 2025-2030 document clearly states that a fair and reasonable compensation structure for Business Correspondent (BC) agents is extremely necessary.

Explaining why this structure is required, the NSFI stated that if quality and consistency are to be maintained in the delivery of financial services at the last-mile level, agents must receive appropriate compensation. Without proper compensation, operating this network is becoming difficult.

In the current situation, the increase in costs and the decrease in commissions are the main reasons creating obstacles for this banking network. A proper compensation system is being considered a fundamental requirement to resolve this problem.