Nabard to give Rs 228-crore grant to encourage cashless payment systems | india-news | Hindustan Times
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Nabard to give Rs 228-crore grant to encourage cashless payment systems

In order to encourage cashless payment modes in rural parts of the country, Nabard said on Thursday it will provide a grant of Rs 228 crore for deployment of point of sale machines and procurement of EMV-based debit cards for farmers.

india Updated: Dec 08, 2016 21:55 IST
Nabard

A man holds new Rs 2000 and Rs 100 notes outside the Reserve Bank of India, in Mumbai. (PTI File Photo)

In order to encourage cashless payment modes in rural parts of the country, Nabard said on Thursday it will provide a grant of Rs 228 crore for deployment of point of sale machines and procurement of EMV-based debit cards for farmers.

The demonetisation move has posed a huge challenge to the cash based transactions in rural economy and there is a pressing need to move towards digital transactions.

Nabard will extend nearly Rs 120 crore to banks for deployment of two PoS devices each in one lakh villages of tier 5 and 6 areas having a population of up to 10,000.

For farmers who have RuPay Kisan Cards, Nabard will help in procurement of EMV chip and PIN-based RuPay Kisan Cards by both regional rural banks and the rural co-operative banks.

The approximate expenditure for this will be Rs 108 crore, covering around 4.32 crore RuPay Kisan Cards holders.

“We believe that these two initiatives will have a positive impact in easing the transition to digital transactions,” Bhanwala said in a statement.

In the past, Nabard has brought the entire co-operative banking system onto core banking solution (CBS) platform.

It had also provided financial support to select regional rural banks for moving over to CBS platform.