Union Bank, NDDB join hands for rural penetration

Pilot project to start in Junagadh in Gujarat, Nanded in Maharashtra.

Close on the heels a tie-up between State bank of India and Ahmedabad-based SEWA bank, The Union Bank of India (UBI) is set to join hands with the Anand-based National Dairy Development Board (NDDB) to extend its reach to rural areas across nation. While details are being worked out, both UBI and NDDB hope to finalise the blueprint in the next few months.

As a part of the arrangement, UBI will open accounts of farmers and will offer them biometric smart cards through its technological consultant Financial Information Network & Operations Ltd. (FINO).

The pilot run, which will start in a couple of days, will be conducted at villages in Junagadh in Gujarat and Nanded in Maharashtra. It may be noted that Junagadh dairy and Nanded dairy is managed by NDDB.

"NDDB is cooperating with UBI for the pilot run. If successful, the project will be replicated across country," said NDDB sources.

In Gujarat, the pilot run will be conducted in 12 villages in Junagadh district including Keshod, Chitari, Dharbavad, Jatalwad, Visavadar, Lalpur, Jambuda and Manekwada. The UBI aims to launch the service somewhere in September or October 2 (Gandhi Jayanti).

According to UBI sources, both the institutions may sign a memorandum of understanding (MoU) soon.

"We want to reach to the farmers. The people in rural areas face hassles including long distance travels for their availing bank services. We will provide them all banking services at their doorstep through help of biometric smartcards. We will give multipurpose biometric smart cards to them, through which we will be able to extend our other financial products such as cattle loans to them," said a senior bank official.

Earlier, Mehsana District Milk Producers Union Ltd (Dudhsagar Dairy), joined hands with State Bank of India (SBI). As per the tie-up, the dairy will work as a business facilitator for SBI while the milk producers of Dudhsagar Dairy will have access to the bank's attractive credit facilities.

Apart from this, SEWA Gram Mahila Haat (SGMH), a marketing organization for rural produce promoted by SEWA, also has entered into an agreement with the SBI to provide comprehensive financial services to the underprivileged encompassing saving, credit, remittance, insurance and pension products in a cost-effective manner in the untapped areas of Gujarat.