HDFC Bank EMI collection service to business correspondents: Lender joins hands with CSC

Taking financial services at doorsteps in rural areas, HDFC Bank has joined hands with CSC e-Governance Services India Ltd to provide EMI Collection Services for CSC-HDFC Bank’s Business Correspondents across the country.  CSC e-Governance Services India Ltd is a Special Purpose Vehicle (CSC SPV) under the Ministry of Electronics & IT (MeitY). The bank's new initiative is aimed at making payments convenient for customers, who can now visit their nearest CSC, to deposit overdues.

“We are very happy to announce the extension of our partnership with HDFC Bank and believe that CSC and HDFC Bank together can transform the delivery of financial services to rural India. With the launch of the EMI Collection facility through CSC, customers need not visit bank branches and can instead deposit the EMI through CSC, thus saving time. It will also ensure extension of financial services to citizens in rural and far-flung areas of the country,” said Dinesh Tyagi, MD, CSC e-Governance Services India Ltd.

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The CSC-HDFC Bank Correspondent or Village Level Entrepreneur (VLE) will match the loan account with the customers’ registered phone number to cross check the amount payable on the system. The VLE will then provide a receipt for the amount collected and deposit the amount in the prescribed form to bank.

Speaking on this partnership, Dinesh Luthra, National Head, CSC Channel HDFC Bank said “We are proud to partner with CSC for this initiative. It ties with our ongoing social programmes which straddles with promoting financial literacy, financial inclusion and income-generating skills at the bottom of the pyramid. Under the initiative, CSC and HDFC Bank will work towards utilizing the services provided by the Business Correspondents for collecting regular EMIs / overdue amount on loans taken by customers. The Business Correspondent’s would act as deposit points for customers of HDFC Bank from segments like auto loan, two-wheeler loan, personal loan, business loan and sustainable livelihood initiative.”  

HDFC Bank partnership with CSC will take banking and financial services to the doorsteps of people living in remote areas through the bank’s network of over 1 lakh VLEs. The VLEs will be supported by HDFC Bank’s branch distribution network which is present in more than 30 states. The arrangement will provide access to formal banking to lakhs of people in rural India.