In an initiative launched by the Maharashta government in collaboration with Yes Bank, 40% of fair price shops across the State will be brought under the bank as business correspondent agents.
The aim, Yes Bank officials said at the launch on Tuesday, is to extend banking and value added services to people staying in the remotest of areas while simultaneously empowering fair price shop owners to better their business opportunities through added income possibilities.
Satish Supe, State Joint Secretary of Food & Civil Supplies, said, “With transparency spreading through digitalisation everywhere, our aim is to do the same for our fair price shop owners and strengthen them.”
The initiative will be rolled out in 12 districts including Palghar, Thane, Pune and Kolhapur, and aims to benefit over 20,000 store owners and more than 70 lakh people.
The bank will absorb these shops to provide services like small value cash deposit into any bank account including domestic remissions and retraction from any bank account via Aadhar enabled payment systems, while also providing services like bill payments, mobile and DTH recharges.
Ritesh Pai, Chief Digital Officer, Yes Bank said, “The initiative also ensures transparency. A lot of ration stores operate in a way that has no clarity on who is entitled to what. With Aadhar cards being linked to the services, it will be possible to ensure that the rightful beneficiaries of subsidy schemes get what they deserve.”
This collaboration will also help Pradhan Mantri Jan Dhan Yojana users, who, in spite of possessing a card, do not have access to ATMs and hence can’t access funds for everyday usage.
“The government is happy because it is bringing in transparency and achieving the dream of a cashless economy, the shopkeepers are happy because their income generation increases and end consumers are happy because whatever is rightfully theirs will reach them. Some of the basic banking needs, for which they had to travel long distances, can now be fulfilled at whichever location they are,” Mr. Pai said.