This Private Sector Bank To Introduce Digital Transactions On e-NAM

The Small Farmers Agri-Business Consortium (SFAC) has appointed IndusInd Bank to offer digital collection and settlement services on the National Agriculture Market (e-NAM) platform for transactions between farmers and traders in India. This initiative will serve farmers and merchants with secure and hassle-free payments, clearing, and settlement services on the e-NAM portal.

Under this partnership, the bank would provide a variety of transaction services to the buyer and seller of agricultural goods using digital modes such as multi-net banking, debit card, NEFT, RTGS, IMPS, and UPI. Speaking on the occasion, Smt Neelkamal Darbari IAS, Managing Director, SFAC expressed that "inclusion of IndusInd bank shall enhance the payment and settlement ecosystem of e-NAM portal. The stakeholders shall be greatly benefitted by the ease of receiving payments in a seamless manner."

Speaking about the announcement, Mr. Soumitra Sen, Head - Consumer Banking & Marketing, IndusInd Bank said, "At IndusInd Bank, it has been our endeavour to play a significant role in promoting the adoption of digital transactions in the country. Our association with e-NAM will facilitate secure and seamless digital payment services to the farmers and traders. We believe, digital payments will bring in more transparency in the sector and further empower the farmers."

The National Agriculture Market (eNAM) is a pan-India online trading framework that allows current Agricultural Produce Market Committee (APMC) mandis to form a single unified market for agricultural commodities. This supports online agricultural commodity transactions for farmers, traders, Farmer Producer Organisations (FPOs), and other stakeholders at the e-NAM mandis. Small Farmers Agribusiness Consortium (SFAC) is the agency responsible for eNAM implementation under the Ministry of Agriculture and Farmers' Welfare of the Government of India.

According to IndusInd Bank "As of January 2022, there are 1.7+ crore farmers and 1.8+ lakh traders who are registered on eNAM and have benefitted from the digital marketplace and the total value of agri-produce traded on eNAM is approx. Rs. 1.72 lakh crore. There are 1000+ mandis that are already integrated with the platform and the government has already announced that another 1000 mandis will be integrated over the next 2-3 years."