For the first time in rural India, a long-held promise of providing mobile payment cards has come been fulfilled with the introduction of Kisan Cards in in the Villupuram district of Tamil Nadu. Now the farmers of the village can pay for their purchases of inputs through the card . The card was introduced by local Pallavan Grama bank.
While the concept is almost one-decade old, the Reserve Bank of India has been trying to bring in more rural banks to participate under the rural mobile banking initiative. The Kisan card will bring down the costs of transactions and the facility will be avaialbe round-the-clock for farmers. The system will soon be extended throughout the country, said RBI Deputy Governor Chakraborty.
The kisan card will also help agriculturists to limit their purchases to inputs and avoid lumpsum loans, which may or may not be fully utilised but end up with high interest rates.The project was funded by a Rs.44.6 lakh grant from NABARD.