India-based Axis Bank has introduced a new Kisan Card to easily provide agricultural loans for farmers through automated teller machines (ATMs).
To avail the loan, farmers or agrarian customers need not visit the branch, but can withdraw the cash through any ATM using the electronic Kisan Card.
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Built on the RuPay platform, the card is offered to farmers based on their cash credit crop loan accounts at the bank.
Axis Bank said the card provides queue free, whole-day disbursement facility for farmers, allowing them to use their loan limit by withdrawing cash up to INR100,000 ($1,668) per day, in the required quantum, as and when required, thereby reducing their interest burden and negating the risk of carrying higher volumes of cash.
Axis Bank retail banking executive director, R K Bammi, said the launch of Kisan Card is a significant step towards introducing a branch-less, convenient and secure banking solution to the Agrarian consumer.
“Normally debit cards are linked to a Savings/Current account. In this case, Kisan Card is linked to the farmer’s Crop Loan account, which negates the need to go to the branch to transact.
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By GlobalData“Almost 90-95% farmers currently use the branch as an interface; we expect about 30 – 40% farmers to migrate on to using this alternate channel actively,” Bammi added.
