In order to run smooth disbursement of agricultural finance to the farmers, Union Bank of India, one of the leading public sector banks in the country, inaugurated a pilot project for end-to-end digitisation of Kisan Credit Cards (KCC) in Harda district of Madhya Pradesh on Monday. By digitising the KCC lending process, it will be more effective and farmer-friendly. Based on the experience of the pilot project, the bank will expand the KCC lending digitisation in the rest of the district in the state and will be gradually expanded across India.
Digitisation of Kisan Credit Cards is a fintech initiative of Union Bank of India in collaboration with Reserve Bank Innovation Hub (RBIH), aimed at overcoming the challenges faced by farmers like in-person visits to a bank branch, submission of land ownership and other documents, and high turnaround time in getting the KCC.
While launching the pilot project, A Manimekhalai, MD & CEO, Union Bank of India spoke about the importance of digitisation of KCC as a transformation in rural financing. She further briefed about the benefits of digitisation of KCC with the initiation of the journey directly through a mobile handset. There is no need to visit a branch. No document submission is required. Farmland verification will be done online. The turnaround time (TAT) reduces as the entire sanction and disbursement process gets completed in a couple of hours.
The event was attended by Rakesh Ranjan, Chief Product Manager, Reserve Bank Innovation Hub (RBIH) and the senior management team of Union Bank with more than 400 farmers of Harda district. The event was also attended by Rishi Garg, district magistrate of Harda district along with his team.
Source: UBI press release
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