On January 12, 2021 Karnataka Vikas Grameena Bank (KVGB) has signed a Memorandum of Understanding(MoU) with Jai Kisan, a rural-focused fintech platform of Greenizon Agritech Consultancy Pvt Ltd to expand access to financial services for individuals and businesses in Karnataka, including farmers and non-farmer entrepreneurs.
MoU was signed by P Gopikrishna, Chairman of KVGB, and Arjun Ahluwalia, founder and CEO of Jai Kisan in Dharwad, Karnataka
About the MoU
Jai Kisan procure a wide range of clients for KVGB
Jai Kisan will procure a wide range of clients for KVGB enabling end-to-end operations and facilitation of credit and other financial services for customers through its technology capabilities.
KVGB intends to extend its services to SMEs among others
KVGB through this partnership aims to extend its services to small and micro enterprises (SME), joint liability groups (JLG), self-help groups (SHG), and to farmers through Kisan Credit Card (KCC) and credit for farm mechanisation efforts
Benefits of Partnership:
This partnership enables KVGB to systemically increase reach and serve consumers and create grassroots level impact by providing low-cost credit to the rural ecosystem in the service areas of 9 districts.
9 districts– Dharwad, Gadag, Haveri, Bagalkot, Vijayapura, Belagavi, Uttara Kannada, Udupi, and Dakshina Kannada districts.
Info about Regional Rural Banks(RRBs)
i.RRBs were established under the provisions of an Ordinance passed in September 1975 and the RRB Act 1976 on the recommendations of the M. Narasimham Working Group
ii.The 1st RRB in India is Prathama Bank. It has its Head Office at Moradabad, Uttar Pradesh(UP). It is sponsored by Syndicate Bank (Syndicate Bank was amalgamated into Canara Bank w.e.f 1st April 2020).
About Karnataka Vikas Grameena Bank (KVGB):
i. It is owned by Central Govt, State Govt and Sponsor Bank in the ratio of 50:15:35 respectively.
ii.Syndicate Bank is the sponsor bank.(Now It is Canara Bank, because Syndicate Bank has been merged with Canara Bank).
iii.It was formed by amalgamating 4 RRBs namely, Malaprabha Grameena Bank, Bijapur Grameena Bank, Varada Grameena Bank and Netravathi Grameena Bank
Note – RRBs were established under the provisions of an Ordinance passed on September 1975 and the RRB Act 1976 on the recommendations of the M. Narasimham Working Group.
Formed– 12th September 2005
HeadOffice– Dharwad, Karnataka
Chairman– P Gopi Krishna
About Jai Kisan:
Founder, CEO– Arjun Ahluwalia
Headquarters– Mumbai, Maharashtra