Last-Mile Delivery Schemes

Last-mile delivery schemes refer to policy initiatives and institutional mechanisms designed to ensure that banking, financial services, and government benefits effectively reach the intended beneficiaries at the grassroots level. In the context of banking, finance, and the Indian economy, these schemes play a critical role in bridging the gap between financial institutions and end-users, particularly in rural, remote, and economically weaker regions. They are essential for translating financial inclusion policies into tangible outcomes.
By focusing on accessibility, affordability, and outreach, last-mile delivery schemes strengthen the connection between formal finance and everyday economic life.

Concept and Meaning of Last-Mile Delivery

The term “last mile” refers to the final stage in the delivery of services, where policies, funds, or financial products reach individual households, small businesses, and local communities. In banking and finance, last-mile delivery addresses challenges such as geographical remoteness, lack of infrastructure, low financial literacy, and limited digital access.
Last-mile delivery schemes are designed to overcome these barriers by using decentralised channels, technology, and local intermediaries to extend financial services to underserved populations.

Objectives of Last-Mile Delivery Schemes

The primary objectives of last-mile delivery schemes include:

• Ensuring universal access to basic banking and financial services.
• Delivering government benefits and subsidies directly to beneficiaries.
• Reducing leakages, delays, and exclusion in welfare programmes.
• Promoting financial inclusion and formalisation of the economy.
• Enhancing trust in public institutions and the financial system.

These objectives align closely with India’s development and inclusive growth agenda.

Role in the Banking Sector

For banks, last-mile delivery schemes expand outreach beyond traditional branch networks. Banks use alternative delivery channels such as banking correspondents, mobile banking units, and digital platforms to serve customers in remote areas.
This approach allows banks to mobilise deposits, extend credit, and offer payment services at lower cost. It also supports compliance with priority sector and financial inclusion mandates, strengthening the social role of banks.

Key Delivery Channels and Mechanisms

Last-mile delivery in India relies on multiple channels:

• Banking correspondents acting as local service providers.
• Mobile and doorstep banking services.
• Digital platforms for payments and transfers.
• Biometric and identity-based authentication for service access.

These mechanisms reduce dependence on physical branches and bring financial services closer to users’ homes and workplaces.

Last-Mile Delivery and Government Programmes

Last-mile delivery schemes are closely integrated with government welfare and development programmes. Financial infrastructure is used to deliver subsidies, pensions, wages, and social security benefits directly to beneficiaries’ accounts.
This direct approach improves targeting, reduces corruption, and enhances the efficiency of public expenditure. It also empowers beneficiaries by giving them direct control over received funds.

Regulatory and Policy Framework

The effectiveness of last-mile delivery schemes is supported by policy direction and regulatory oversight of the Reserve Bank of India. The RBI encourages banks to adopt innovative delivery models while ensuring customer protection, operational security, and prudential discipline.
Coordination between financial regulators, government departments, and technology providers is central to the success of these schemes.

Contribution to Financial Inclusion

Last-mile delivery schemes are a cornerstone of financial inclusion in India. They enable first-time users to access bank accounts, payments, credit, insurance, and pension products.
By reducing physical and procedural barriers, these schemes integrate marginalised groups such as rural households, informal workers, women, and the elderly into the formal financial system.

Impact on the Indian Economy

At a macroeconomic level, effective last-mile delivery strengthens the transmission of economic policy and public spending. Faster and more reliable flow of funds stimulates consumption, supports rural demand, and improves income security.
The formalisation of financial transactions through last-mile channels enhances transparency, tax compliance, and data availability, supporting better economic planning and governance.

Role in Digital Transformation

Technology plays a central role in last-mile delivery schemes. Digital payments, mobile connectivity, and biometric authentication have transformed how services are delivered at scale.
These innovations reduce costs, increase speed, and improve accountability. They also enable real-time monitoring and evaluation of programme effectiveness.

Social and Developmental Significance

Beyond economic outcomes, last-mile delivery schemes have strong social significance. Access to financial services empowers individuals, reduces vulnerability, and enhances resilience to economic shocks.
By ensuring that benefits reach the intended recipients, these schemes strengthen social equity and trust in institutions.