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What drives activity of banking agents? Evidence from Rural India

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  • Gupta, Sanal
  • Singh, Puran

Abstract

This article investigates previously unexplored predictors of banking agents’ activity using a primary dataset of agents operational in a rural setting in India. We measure banking agents’ activity using their monthly transaction count and regress it on seven predictor categories. We provide evidence of the role of operational practices, agents’ commitment, resources, support, and market characteristics, in agents’ banking activity. We also identify specific factors that drive superior performance by the agents. The findings inform policy-making groups and implementing agencies of agent banking on agent selection criteria, best practices, and supervision mechanisms to ensure the agent banking model’s effectiveness.

Suggested Citation

  • Gupta, Sanal & Singh, Puran, 2023. "What drives activity of banking agents? Evidence from Rural India," World Development Perspectives, Elsevier, vol. 31(C).
    • Handle: RePEc:eee:wodepe:v:31:y:2023:i:c:s2452292923000383
    DOI: 10.1016/j.wdp.2023.100522
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    More about this item

    Keywords

    Agent banking; Business correspondent model; Rural banking; Financial inclusion;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G29 - Financial Economics - - Financial Institutions and Services - - - Other
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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