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.

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.

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

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.