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SBI, HUL sign MoU for providing Digital Payment Solutions to retailers and distributors

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SBI and HUL partner to transform retailer payments digitallyOn October 1, 2020 State Bank of India (SBI) and Hindustan Unilever (HUL) signed a Memorandum of Understanding (MoU) to provide Digital Payment Solutions and Financing solutions to HUL’s retailers and distributors. 

The Partnership will accelerate the adoption of digital payments among small-scale entrepreneurs and retailers in all parts of the country. It will be available initially in Mumbai and Bengaluru. 

Key Points:

i.As part of the MoU, SBI will provide instant paperless overdraft facility up to INR 50,000 to retailers for their billings and financing facilities to HUL’s Distributors. 

ii.SBI will install point of sale (PoS) machines at multiple HUL touch points across the country to ensure that it reaches customers in smaller towns. 

iii.It will also provide Unified Payments Interface (UPI)-based solutions to HUL retailers to ensure hassle-free, safe and instant cashless payments to dealers through HUL’s retailer application ‘Shikhar’.

iv.SBI will provide corporate packages for HUL employees to offer retail products at competitive prices. 

v.The process of availing credit will be made simple through the integration of SBI’s YONO Platform and HUL’s Shikhar app. 

Push to MUDRA Loans:

i.The partnership will help in increasing beneficiaries of MUDRA (Micro Units Development and Refinance Agency Ltd) loans, as small retailers can use digital financing to get refinance support. 

ii.Under MUDRA loans, banks, microfinance institutions, Non-Banking Financial Company (NBFC) lend up to INR 10 Lakh to micro units.

Recent Related News:

i.On 31st August 2020, Vedanta announced tie up for a long term syndicated loan facility for Rs.10000 crores with State bank of India(SBI) as facility agent and SBICAP Trustee Company limited(SBICTCL), a wholly owned subsidiary of SBI Capital Market Limited(SBICAP) as the security trustee with door to door tenor of 7 years.

ii.On May 07, 2020, GlaxoSmithKline plc (GSK), a British multinational pharmaceutical company, sold its 5.7 % stake in Indian FMCG (fast-moving consumer goods) company Hindustan Unilever Limited (HUL) for $3.35 billion (about 254.8 billion rupees) in the stock market through a largest ever block deal.

About State Bank of India (SBI):
Chairman – Rajnish Kumar
Headquarters – Mumbai, Maharashtra

About Hindustan Unilever (HUL):
Chairman & Managing Director – Sanjiv Mehta
Headquarters – Mumbai, Maharashtra