HDFC Bank, CSC launch EMI collection services for business correspondents

HDFC Bank has joined forces with CSC e-Governance Services India to launch the EMI collection services for CSC-HDFC Bank’s business correspondents across India.

CSC e-Governance Services India is a special purpose vehicle (CSC SPV) under the Indian Ministry of Electronics & IT (MeitY), which had been created for monitoring the functioning of the common services centers (CSC) scheme, a key enabler of the Digital India program.

With EMI Collection Services, payments will be made convenient for customers, who can go to their nearest CSC for depositing overdues, said HDFC Bank.

The CSC-HDFC Bank correspondent or village level entrepreneur (VLE) will match the loan account with the registered phone number of customers to verify the amount payable on the system. The VLE will then give a receipt for the collected amount and deposit the money in the prescribed form to the bank.

HDFC Bank said that its partnership with CSC will bring banking and financial services to the doorsteps of those staying in remote areas. This will be via the bank’s network of more than a lakh VLEs.

HDFC Bank, CSC launch EMI collection services for business correspondents. Photo courtesy of HDFC Bank Ltd.

Dinesh Luthra – National Head, CSC Channel HDFC Bank said: “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.”

The Indian private sector bank said that the VLEs will be supported by its branch distribution network which is present in 30 plus states. The arrangement will give access to formal banking to lakhs of rural residents in India, said HDFC Bank.

Dr. Dinesh Tyagi – MD of CSC e-Governance Services India said: “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.”