Banking and monetary regulator Reserve Bank of India has said that in order to make financial inclusion more effective, business correspondents (BCs) should be paid more adequately for their work.

This would increase their motivation towards the task assigned to them.

"Banks have to realise that for the Business Correspondent (BC) model to succeed the BCs, who are the first level of contact for customers, have to be compensated adequately, so that they too see this as a business opportunity," RBI Deputy Governor K C Chakrabarty said.

Banks have been permitted to use the services of post offices, trusts and other sources for providing banking services to all far flung areas of the country, These external sources happen to be BCs and they need to be properly remunerated by banks for their services offered.

Chakrabarty added that the relationship between banks and BCs has yet not stabilized. "Reports reaching us still suggest that the true spirit of co-operation is yet to stabilise, with each still trying to destabilise the other. The entire world is looking at this experiment in India and I would urge all of you to get your acts together."