Amul launches micro ATM services for dairy farmers

June 10, 2021

With an aim to extend banking services to its member milk producers, diary giant Amul on Wednesday launched its micro ATM services from Anandpar village in Rajkot Wednesday.

The service was launched with the secretary of Anandpar village cooperative milk producers society associated with Gopal Dairy (Rajkot District Cooperative Milk Producers Union Limited) facilitating cash withdrawal through an electronic data capture (EDC) machine with finger scanner option. Shamal Patel, chairman of Gujarat Cooperative Milk Marketing Federation (GCMMF), vice-chairman Valamji Humabal, GCMMF managing director R S Sodhi and Gopal Dairy chairman Gordhan Dhameliya attended the event through video-conferencing.

The service called Amul Micro ATM system has been developed with joint efforts by GCMMF, fin tech firm Digivridhi with banking partner Federal Bank. As part of the arrangement, the Federal Bank would deliver cash to the Anandpar village cooperative society on 9, 19 and 29 of every month and secretary of the village cooperative would function as its banking correspondent while Digivridhi will act as bridge between the bank and the village cooperative society.

“By adopting the Micro ATM technology, milk producer members are linked with digital payment system… Member unions of GCMMF will roll out Amul Micro ATM project in all village cooperative societies at the earliest. We are working for this project for quite some time and it is a matter of pride for us to fulfil “Digital India” vision of our Hon’ble Prime Minister,” an official release from Amul quoted Patel as saying.

Addressing the event, Sodhi said that lack access to digital banking technology in remote villages had prompted Amul to take the banking services to its village cooperative societies. “There are three main advantage of the project – increase in transparency in all financial transactions as well as credit worthiness of individual which would be beneficial for them for availing any kind of loan. It will further cultivate habit of saving,” the release quoted the MD as saying.

“Rajkot dairy union has 892 village level milk cooperative societies and for lack of access to banking services, around 20 per cent of these societies have no option but to pay their member milk producers hard cash for pouring milk in the dairy. With the micro ATM service, these farmers will now have the option of getting their dues credited to their bank accounts and withdraw as much cash anytime they want,” Vinod Vyas, managing director of Gopal Dairy, told The Indian Express, adding, “Initially, we are launching this service in 14 villages on pilot basis. If the services remain a success, Amul may extend it to other villages.”

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