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presence of an estimated 96,000 active CSPs. The survey has contacted 1030
CSPs for the survey, of whom 170 declined to be interviewed. Thus, 860 were
interviewed, spread over 11 states. The results were hardly encouraging:
i. Overall, CSPs are new and the quality of service would need to
improve substantially to offer value to clients;
ii. Most CSPs are not positioned as effective extensions of the banking
system to offer a larger suite of products and services; thus they
focus on completing transactions on behalf of their bank partners
and do not offer a wide array of banking services;
iii. There is a significant mismatch between demand for and supply
of financial products; bank seemed to prefer offering savings
remittances through CSPs rather than other products, while CSPs
tend to prioritize, at any rate currently, payments over banking
services;
iv. Most CSPs report operational constraints: delayed remuneration,
liquidity problems and technology failures;
v. Their earnings form CSP work are less than half of what they expect
in most cases.
These are consolidated findings, but they are diverse across India:
i. Rajastan’s CSPs report widespread operational problems. Tamil Nadu’s
are particularly dissatisfied with their revenue; other states seem
to do better. CSPs in Delhi and Gujatrat generate significantly more
transactions and revenue.
ii. Those moving points CSPs – about 30% - have higher transactions than
fixed points ones, but moving points ones are not always available.
iii. CSP activities are the sole source of income for nearly half of all CSPs.
iv. Those active CSPs are those who offer more offer more than one product,
operate in an urban location and for them, CSP is one amongst several
sources on income.
v. Rural CSPs have fever transactions and revenues there should be concern
about their quality of service to clients as well their sustainability.
vi. More than four out of five CSPs were managed by a BC company, also
called a BC Agent Network Manager. Most of these are specialised BC
companies (78% of the CSPs in the sample). . Though about 5% of CSPs
