What structural challenge do commercial banks frequently encounter when expanding physical branch networks into high-altitude border circles of Arunachal Pradesh?

💡 Solution & Explanation

Expanding physical banking infrastructure into remote, high-altitude regions of Arunachal Pradesh entails formidable hurdles, including erratic power supply, lack of reliable telecommunication connectivity, difficult terrain, and low population density which affects branch profitability. To overcome this, banks increasingly deploy micro-ATMs and Business Correspondents (Bank Mitras) to deliver basic financial services. Financial inclusion policies continuously strive to bridge this last-mile connectivity gap. Satellite communication links are gradually improving branch connectivity in these remote areas.