Kotak Mahindra Bank, a private bank in India, has launched a financial inclusion programme in the Indian state of West Bengal that is aimed at members of 75 cooperatives that supply milk to Amul, the brand owned by the Gujarat Cooperative Milk Marketing Federation (GCMMF), a federation of 17 district-level cooperative unions with a combined membership of 3.18 million milk producers [1] [2]. Under the programme, which is named “Kotak Samriddhi,” farmers will receive same-day payments for their milk supply through direct transfers to their bank or card accounts rather than cash. The bank has reported that the programme will cover approximately 8,000 farmers [3].
Kotak Mahindra Bank has tied up with the National Payments Corporation of India (NPCI), a public company that facilitates retail payment systems with the support of the Reserve Bank of India (RBI), to issue cards to the participants. Participants will be able to use automated teller machines (ATMs) to access cash and the bank will be using a network of business correspondents to help farmers enroll in the programme.
As of March 2013, Kotak Mahindra Bank reported total assets of INR 837 billion (USD 14 billion) and 503 branches nationwide.
By Nisha Koul, Research Associate
About Kotak Mahindra Bank: Kotak Mahindra Bank is a private bank based in Mumbai, India. It operates under the umbrella of the Kotak Mahindra Group, which also offers stock brokerage, mutual funds, life insurance and investment banking. The bank was originally founded in 1985 as Kotak Capital Management Finance Limited, a non-banking financial company. In 2003, it was converted into a bank. As of March 2013, Kotak Mahindra Bank reported total assets of INR 837 billion (USD 14 billion) and 503 branches nationwide.
Sources and Additional Resources:
[1]Business Standard, “Kotak Mahindra launches financial inclusion programme,” http://www.business-standard.com/article/finance/kotak-mahindra-launches-financial-inclusion-programme-113121700488_1.html
[2] Amul, GCMMF, http://www.amul.com/m/organisation
[3] The Hindu, “Kotak Bank rolls out financial inclusion plan for Amul workers,” http://www.thehindubusinessline.com/news/states/kotak-bank-rolls-out-financial-inclusion-plan-for-amul-workers/article5470759.ece
MicroCapital Story, January 3, 2014, “Reserve Bank of India Approves State-Run Savings Scheme for Poor People in West Bengal After Collapse of Saradha Group,” https://www.microcapital.org/microcapital-brief-reserve-bank-of-india-approves-state-run-savings-scheme-for-poor-people-in-west-bengal-after-collapse-of-saradha-group/
MicroCapital Story, October 31, 2011, “Indian Microfinance Institution Trident Microfin Defaults on Loan from Kotak Mahindra Bank,” https://www.microcapital.org/microcapital-brief-indian-microfinance-institution-trident-microfin-defaults-on-loan-from-kotak-mahindra-bank/
MicroCapital Universe Profile, Kotak Mahindra Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Kotak%20Mahindra%20Bank
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
Similar Posts:
- MICROCAPITAL BRIEF: Jeevan Bikas, Pula, UNCDF Partner on Index Insurance for Farmers in Nepal
- MICROCAPITAL BRIEF: Abler Nordic Leads $10m Equity, Debt Investment Round for Ergos, Agtech Offering Crop Storage in India
- MICROCAPITAL BRIEF: EBRD Loans $4.4m to KEP Trust of Kosovo with Focus on Rural, Women-led MSMEs
- MICROCAPITAL BRIEF: Incofin Closes India Progress Fund with $77m to Promote Financial Inclusion, Agricultural Value Chains
- MICROCAPITAL BRIEF: Annapurna Finance Borrowing $25m from responsAbility to Boost Renewable Energy, Energy-efficiency in India