Fino Payments Bank taps dairy sector to digitize payments
• Ties up with Mother Dairy and Gokul Dairy, in talks with few others • Thousands of milk collection centres will become banking points to facilitate digital payments • Going forward focus on digitizing payments for other agro and rural based sectors 8 November 2017: In line with the Government’s push for digital payments, Fino Payments Bank is focusing its efforts towards digitizing payments for rural masses, starting with those associated with the dairy sector. The newly launched payments bank announced that it has tied up with Mother Dairy and Gokul Dairy to digitize payments of milk pourers.
As the largest milk producing nation with over 160 million tonnes of output annually, India has over 15 million milk producers associated with more than 150,000 village dairy cooperatives. The milk producers or pourers, a key component of Fino’s target customer base, largely get paid in cash at the milk collection centres (MCC) where they deposit milk.
Stating digitizing payments for dairy sector as a step towards banking for all, Mr. Rishi Gupta, MD & CEO, Fino Payments Bank said, “As the torchbearers of White Revolution, the hard-working milk pourer segment across the country deserves to get the benefits of digital banking. While the segment plays a vital role in the nation’s growth story, it also needs to be financially secure. With this thought, we have focused on the dairy sector to enable digital payments and going forward we will explore other rural, agro-based and allied sectors that need digitized payments and banking services.”
To facilitate digital payments for milk pourers of Mother Dairy Fruit and Vegetable Pvt. Ltd, a subsidiary of National Dairy Development Board, Fino Payments Bank will open accounts and provide instant RuPay debit cards. The same will be done for milk pourers affiliated to Maharashtra-based Gokul dairy.
Post account opening,the payment due to milk pourers will be directly credited into their accounts.They can withdraw money from the MCCs or from any ATM using RuPay debit card.Further, customers can use Fino’s mobile banking app BPay to make digital paymentsand do other banking transactions.
“Through our simpleand convenient banking model, we would encourage our customers to save moneyand make payments through bank accounts. As a digital bank, our branches andbanking points deploy Aadhaar-based authentication and verification tofacilitate secure, safe and paperless banking transactions. Customers also havethe option to use BPay, our mobile banking app,” added Mr. Gupta.
With each dairy havingthousands of MCCs, Fino will add these centres to its banking network therebyincreasing its reach and providing enhanced customer convenience. This is boundto make life easier for milk pourers. Contrast this to the earlier situationwhere people had to travel quite a distance to the nearest bank to withdrawmoney at extra cost and loss of income.
Fino Payments Bankstarted operations in July 2017 with 410 branches and 25000 access pointsacross 14 states.