Agent Dormancy: Reasons and Remedial Measures

Agent dormancy is a cause of concern for financial inclusion. This research was carried out in 12 districts across four states of India to understand rural customers' perception of dormancy, the challenges faced by them after an agent goes dormant, the reasons for agent dormancy and the remedial measures to cope with this challenge.

This paper highlights that some of the prominent reasons for agent dormancy include non-payment of agent commissions, lack of support for agents, communication issues, poor grievance redressal mechanisms, and technology and infrastructure-related issues. The research further highlights the role to be played by the regulator in arresting agent dormancy.