Mobile commerce company Paymate on Wednesday said that its mobile Kisan Credit Card (mKCC) has benefited over 7,000 farmers in Villupuram district of Tamil Nadu. The mobile based system helps farmers use their loan amounts to purchase seeds, fertilizers including other agricultural items without having to visit nearby cities. The payment solution, jointly developed by wireless transactions platform provider – PayMate India, Pallavan Grama Bank, Indian Bank and National Bank for Agriculture and Rural Development (NABARD), was being pilot tested in Villupuram.
How does it work?
After activation of the registered KCC with Pallavan Grama Bank, the farmer can avail the service for withdrawal or purchase. To withdraw money, the customer approaches the Business Correspondent (BC), provides his mobile number and tells the withdrawal amount. An automated voice response seeks the customer’s 4-digit PIN number. The account is checked for available balance and cash dispatched in case of sufficient funds. To purchase seeds, fertilizers and other agricultural items, the farmer simply has to tell the shopkeeper about his requirements and confirm his mobile number.
According to a study conducted by the Indian Institute of Banking & Finance pointed out that mKCC has enabled each farmer to save 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 company said in a statement.
The mKCC pilot project was launched by PayMate and the participating banks in October 2011. Villupuram has about 18,000 farmers and the initial target was to include 5000 farmers for the pilot. However mKCC claims to have exceed its expectations by registering 7000 farmers into the system.
With 159 merchants already in the system, the July 2012 revenues compared to October 2011 has seen a significant growth of 280%; whereas the maximum revenue growth was observed in June 2012 with a whopping 410% jump, the statement said.