The introduction of mobile Kisan Credit Card (mKCC) by PayMate has brought relief to more than 7,000 farmers in the Villupuram district of Tamil Nadu. The system enables the farmers to make agricultural purchases like seeds, fertilizers etc. using a mobile phone thereby eliminating the need to travel distances.
The venture is jointly developed by wireless transaction platform provider- PayMate India, Pallavan Grama Bank, Indian Bank and National Bank for Agriculture and Rural Development (NABARD).
For availing the services, the farmer has to register himself with Pallavan Grama Bank. He can withdraw the needed amount by approaching the Business Correspondent (BC) with his mobile number. After this he receives a 4-digit PIN number via an automated voice response. The cash is dispatched once the account is checked for balance availability. For his agricultural purchase, the farmer has to merely inform the shopkeeper about his requirements with his mobile number.
As per Indian Institute of Banking & Finance study, through mKCC, each farmer is saving Rs. 7314 including cost save on travel (Rs.75-80 per visit to banks) and average interest saving (around Rs 1,000 in a year). The system has observed phenomenal revenue growth in June 2012 with a whopping 410% jump.