NEW DELHI: With a view to make life easier for those accessing banking and credit facilities in rural areas, the RBI has started an initiative for digitisation of rural finance, beginning with Kisan credit cards.
This month, the regulator is launching a pilot in select districts of MP and Tamil Nadu aimed at automation of various processes within banks and integration of their systems with the service providers. The project along with Union Bank and Federal Bank aims to make it more efficient and cut costs and the turnaround time significantly.
“Rural finance encompasses a range of financial services offered to rural customers, including farmers, at all income levels. In a country like India, rural credit is closely related to inclusive economic growth, as it caters to the requirements of agriculture and allied activities, small businesses, etc.,” the RBI said.
