Karnataka Bank inks pact with Digivriddhi to offer financial services to dairy farmers

Karnataka Bank has partnered with fintech company Digivriddhi (DGV) to offer financial services catering to the needs of dairy farmers and milk societies. The services will be made available at village dairy co-operative societies associated with milk unions of Karnataka Milk Federation (KMF).

To begin with, the services are now made available to milk societies associated with Chamarajnagar Milk Union.

Quoting Srikrishnan H, Managing Director and Chief Executive Officer (CEO) of Karnataka Bank, a media statement said, “We are accelerating our fintech initiatives and collaboration with partners across various verticals with a view to enhancing access to markets and customer experience. This partnership with DGV will provide seamless and innovative end-to-end digital product offerings to the dairy farmers and provide access to institutional credit, while easing and digitizing payments across the dairy value chain.”

Sekhar Rao, Executive Director of Karnataka Bank, said Karnataka Bank has a rich legacy of being a key player in agricultural sector with strong under-writing capabilities for loan disbursals duly complemented with the presence of specialised agriculture field officers in potential areas. “We will further consolidate this portfolio with this tie up with fintech partner DGV by rolling out specific products/solutions synergizing the unique strengths of both the companies for the dairy sector,” he said.

Ragavan Venkatesan, Founder and CEO of DGV, said ‘DGV Pay’ product simplifies the payments value chain for dairy farmers and micro-enterprises helping with their basic banking needs, including opening of bank accounts. ‘DGV Money’ product is built with a unique underwriting mechanism that facilitates digital working capital and bovine loans to farmers, Venkatesan said.