The Government of India’s Common Services Centres (CSC), a special purpose vehicle under the Ministry of Electronics & IT, has signed an agreement to allow its Village Level Entrepreneurs (VLEs) to operate as banking correspondents of HDFC Bank.
The move, estimated to see the deployment of 300 thousand VLEs, is aimed at driving financial inclusion and expanding reach of banking services in rural parts of the country.
It will also enable the government to extend the reach of its Direct Benefit Transfer (DBT) services among rural population.
Furthermore, it will allow the bank to allow its customers openin an eKYC savings bank account and offer fixed deposits as well as fund transfers and remittances services.
The arrangement will also allow the CSCs to operate as Business Facilitators (BF) enabling the merchants, entrepreneurs, farmers and other rural people to avail loan facility from the HDFC Bank.
The CSC scheme was initiated by the government as a part of the ‘Digital India’ programme.
Apart of this arrangement, HDFC Bank will assist CSC SPV to convert 1000 identified villages into Digi Gaon (Digital Villages) within this financial year.