HDFC Bank Ltd, under the aegis of its Milk to Money (M2M) programme, has digitised payments at over 1,200 dairy co-operatives across 16 Indian states. This will benefit 3.2 lakh dairy farmers.
Launched in 2010, M2M is aimed at bringing dairy farmers into the organised banking system, digitising the entire dairy value chain and bringing to them all products meeting their banking and financial needs.
The move will improve cash flows for farmers, besides bringing in greater efficiencies for all stakeholders.
“We are extremely proud of what we believe is the second White revolution in the country and the changes it has brought about in the lives of farmers,” said Michael Andrade, head, agri business, HDFC Bank.
“Bringing them under the formal financial fold has enabled them to live better lives,” he added.
The M2M footprint now covers the states of Gujarat, Rajasthan, Maharashtra, Uttar Pradesh, Punjab, Haryana, Madhya Pradesh, Odisha, Jharkhand, Bihar, Assam, Meghalaya, Tamil Nadu, Kerala, Karnataka, and Andhra Pradesh. The programme has gained momentum post-demonetisation, with massive growth in the number of co-operatives after November 2016.
What M2M is about
- Milk to Money ATMs at larger collection points have cash dispensers, while smaller collection points are equipped with Business Correspondent- (BC) operated micro-ATMs, enabling the farmer to withdraw the amount from his account immediately
- The transparency in the milk collection process benefits both farmers and the society, as payments are made quickly without the hassle of cash distribution
- The payment coming into the farmer’s bank account creates a credit history, with which he can take a loan, buy more cattle, increase business and avail other banking products
- Farmers can receive the direct benefit transfer from the government in the same account
- Farmers get access to bank products like cattle loans, Kisan Credit Cards (KCCs), two-wheeler loans, overdraft and fixed deposits
