A study by Consultative Group to Assist the Poor (CGAP) has said that banking regulators should work in a balanced manner between innovation and consumer protection when setting up branchless banking system for the rural areas of the country using technology and business correspondent model.

The survey titled ‘Protecting Branchless Ban¬king Consumers: Policy objectives and regulatory options' has done study in India, Brazil, Kenya and Peru.

"From a regulatory and supervisory perspective, the key risks of branchless banking derive from the extensive use of outsourcing - more specifically the use of agents - and technology-enabled devices, such as mobiles," CGAP, which is housed within the World Bank group, said.

Banks are vigorously working towards acheiving their goals of financial inclusion. On this note, it has been suggested that the new index for financial inclusion prepared by CRISIL should be brought to use.

"Customer mobility, cross-selling of services, product suitability and e-money issuing are some of the next gen consumer protection topics in branchless banking that require further research and experimentation," CGAP said.