Bank of Baroda and co-operative major IFFCO today launched co-branded debit card for farmers that has an in-bulit overdraft facility of Rs 2,500 with one- month interest-free period. An interest of 8.60 per cent per annum will be charged on overdraft after 30 days. To promote digital transaction among farmers, the Bank of Baroda and IFFCO plan to issue 2 lakh co-branded debit cards in four states — Uttar Pradesh, Bihar, Madhya Pradesh and Rajasthan — where the bank has a major presence. The Bank oF Baroda and IFFCO are also exploring possibility of raising the overdraft limit beyond Rs 2,500 depensing on the success of the scheme.
Bank of Baroda MD & CEO P S Jayakumar and IFFCO’s Director (HR & Legal) R P Singh distributed this card amongst 51 farmers. In February, the two companies signed a memorandum of understanding (MoU) in this regard. Under this scheme, farmers can open a ‘Baroda IFFCO Krishi Saving Bank Account’ with initial deposit of Rs 100 only and by providing his Aadhar number. The other feature of the card includes no minimum balance and it can be used at at ATM. After opening the saving bank account, farmers will be issued a co-branded debit card which can be used for purchase of various agri-products at IFFCO sales counters.
Speaking at the event, Jayakumar said the bank would work closely with IFFCO and farmers for the growth of rural India. “We want to give credit and other bank services to farmers,” he said, adding that timely credit facility would help farmers in raising their production and income. To promote cashless transaction, Jayakumar said the bank is opening digital branches in rural areas. These co-branded debit cards will be exclusivley used for the purchase of IFFCO products only. The Bank of Baroda will provide 2,500 PoS (point of sale) machines initially at the various locatios across the country recommended by IFFCO.
This scheme will benfit a large number of farmers and will be a boost in digital drive for the economy, the bank said. IFFCO’s Director (HR & legal) R P Singh urged the farmers to use this facility in a prudent manner.
The co-operative’s General Manager Marketing Yogendra Kumar said this will boost investment in agriculture sector and promote digital transaction.