Amul installs micro ATM to pay dairy farmers at their doorsteps

ANAND, 9 June 2021: In order to provide payment for procuring dairy farmers milk, India's largest dairy co-operative, Gujarat Co-operative Milk Marketing Federation Limited (GCMMF) popularly known as Amul has installed first Micro ATM payment center at doorstep of milk producer members.

Anandpara Village Dairy Co-operative Society of Rajkot milk union has become the first to adopt this method. Anandpara is a small village in Rajkot district with a population of around 4,000 and milk procurement of 2,000 liters per day has created history.  

Rajkot District Co-operative Milk Producers' Union Limited, Gopal Dairy which is affiliated dairy union of Amul has taken the initiatives and taken concrete step to digitalize rural economy.  

After virtually inaugurating the AADHAR based Amul Micro ATM facility for the milk pouring members of Anandpara Village society, Gordhanbhi Dhamaliya, Chairman, Rajkot Dairy said that any member can visit the milk society and withdrew the money through Amul Micro ATM and get the payment immediately. It is a big relief for farmers as members need not to visit bank and incurring time & travelling cost.

He also mentioned that such type of transaction are safe during pandemic and there is no need for any type of credit or debit card as the entire transaction is based on thumb impression.

Valamjibhai Humbal, Vice Chairman, Gujarat Co-operative Milk Marketing Federation Limited (GCMMF) (Amul) congratulated team of Rajkot Dairy for implementation of such unique project and added that this project will give the confidence to small, marginal and landless farmers and will cultivate saving habit for future needs. Since demonetization, we are working for this project and it is a matter of pride for us that we have started the project from Rajkot.  

The Micro ATM technology milk producer members are linked with digital payment system, Shamalbhai Patel, Chairman, Gujarat Co-operative Milk Marketing Federation Limited (GCMMF) (Amul) said and emphasized that member unions of GCMMF will roll out Amul Micro ATM project in all village cooperative societies at the earliest.

Dr. R S Sodhi, Managing Director, Gujarat Co-operative Milk Marketing Federation Limited (GCMMF) (Amul) said lack of digital banking technology in remote villages has given the idea to start this project. Under the project around 4,000 village milk cooperative societies across Rajkot, Surat, Bharuch and Surendranagar districts were surveyed to get idea about the actual difficulties faced by them. He added that during demonetization time, member unions of GCMMF had opened more than 25 lakhs bank account for milk producer members after demonetization.

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 savings, Dr Sodhi stressed.

Vinod Vyas, Managing Director, Rajkot Dairy has conveyed his sincere thanks to all Chairman and Managing Directors informed that under the project not only milk producer members but all villagers will be benefited and also congratulated the dedicated staff of Rajkot dairy, Digivridhi (Fintech) and Federal bank for successful implementation of pilot project.

Amul Micro ATM system has been developed with joint efforts by GCMMF (AMUL) Fintech Company, Digivridhi with banking partner Federal Bank who arranged the cash delivery at villages which was the key challenge of this project.  Raghvan from Digividhhi, Executive Director, Federal Bank, Atul Kumar Agrawal, Senior General Manager (Finance), GCMMF were also present on the occasion.

It is pertinent to note that member unions of GCMMF are already making digital payment of around INR 140 to INR 150 crores per day to its village societies.

Image caption: A dairy farmer using Amul's micro ATM