MUMBAI: Private sector lender HDFC BankBSE -0.29 % has digitised payments at over 1,200 dairy co-operatives in the country which benefits 3.2 lakh dairy farmers across 16 states under the aegis of its Milk to Money (M2M) programme.
Launched in 2010, M2M is aimed at bringing dairy farmers into the organized banking system, digitising the entire dairy value chain, and bringing to them all products meeting their banking and financial needs. The move improves cash flows for farmers besides brining 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 a better life.”
Milk to Money ATMs at larger collection points have cash dispensers, smaller collection points are equipped with Business Correspondent (BC) operated Micro ATMs, enabling the farmer to withdraw the amount from his account immediately. 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.
The M2M footprint now covers the states like Gujarat, Rajasthan, Maharashtra, Uttar Pradesh, Punjab, and Haryana among others. The programme has gained momentum post demonetisation with massive growth in the number of co-operatives after November 2016.