Fertiliser major IFFCO has tied up with Bank of Baroda to launch co-branded debit cards for farmers as part of strategy to promote cashless transactions in the rural area.
IFFCO and Bank of Baroda yesterday signed a Memorandum of Understanding (MoU) in this regard. The pact was signed by Yogendra Kumar, General Manager (Marketing), IFFCO and GB Panda, General Manager (government relationships), Bank of Baroda.
IFFCO and Bank of Baroda would pool in their resources to promote market and make accessible organised finance facility at competitive interest rates for the farmers who wish to buy the products of IFFCO and its subsidiaries.
“Bank of Baroda will open Aadhaar-enabled accounts of farmers and (have) agreed to issue co-branded debits card to the specified farmers with overdraft facility of Rs 2,500 per card through which farmers can purchase the IFFCO and its subsidiary agri-inputs exclusively from specified retail points on credit period of one month,” IFFCO said in a statement.
Farmers would get a big relief by getting credit facility of one month and this step will promote very aggressively the inclusion of cashless transaction system in rural India, it added.
IFFCO said it would take the guarantee of the total outstanding amount of any of the farmers default due to various reasons.
IFFCO Marketing Director A Roy said that 2 lakh co-branded debit cards would be issued to selected farmers on the basis of the recommendation of its authorised representative.
Initially, the co-branded cards will be given to the farmers in Uttar Pradesh, Bihar, Rajasthan and Madhya Pradesh.
Bank of Baroda General Manager GB Panda said, it has agreed for issuing co-branded cards and to install PoS machines at various locations across India after the approval of the competent authority.