Banks are earnestly taking forward their aims of financial inclusion but while keeping their cost of operations in mind. This is why lenders are constantly looking out for low cost modes of carrying out financial inclusion.

The business correspondent (BC) model is not considered the most viable mode in terms of economic factors, and thus alternatives are being sought by banks.

According to Mr K R Kamath, Chairman and Executive Director of Punjab National Bank, banks should look towards achieving financial inclusion in terms of one lakh gram panchayats rather than six lakh villages.

"This would be a more practical way of looking at financial inclusion," he said.

"It would be more feasible to develop business first, create a critical mass and then supplement with a bank branch," felt Mr Kamath.

Bank of India has however seent the setting up of kiosks in unbanked villages which would be run by BCs as a better mode. "So it becomes a mini branch without the costs of setting up one," quoted Executive Director of the bank, Mr N Seshadri.