What specific financial inclusion challenge do commercial banks encounter while expanding branch networks in the upper reaches of the Garhwal and Kumaon divisions of Uttarakhand?

💡 Solution & Explanation

Expanding brick-and-mortar bank branches into high-altitude, sparsely populated regions of Uttarakhand involves high capital costs, logistical hurdles, and low initial business volumes, making traditional branch models commercially challenging. Banks utilize micro-ATMs, Business Correspondents, and mobile vans to overcome these terrain obstacles. Financial literacy programs are simultaneously conducted to encourage formal banking habits.