– Odisha is the first state-wide implementation of Roots via Odisha State Co-operative Bank
Bhubaneswar: To ensure a far more efficient agricultural loan infrastructure for Indian Farmers, VSoft Technologies,a global provider of information and technology solutions for financial institutions,has today announced their breakthrough‘ROOTS’ softwarethat runs Rupay Enabled Kisan Credit Card (KCC).Currently, Farmers who are members of Primary Agricultural Credit Societies (PACS)don’t have access to real-time money because they are not connected to the National Financial Switch (NFS) and the payments& settlements system. ‘ROOTS’addresses this by storing all their information online (even linking to their Aadhaar-seeded account), ensuring faster processing of agricultural loans as eligibility checks are done in real-time.
Odisha became the first state for the implementation of ‘ROOTS’throughOdisha State Co-operative Bank that deals with 17 District Cooperative Central Banks (DCCBs), 360 Branches, 2500 Primary Agricultural Credit Societies(PACS) and caters to over 53 Lakh agriculture families. As a result of this, Odisha is the only state to have 2500+ PACS with digitized data now linked to a Core Banking Platform.
Speaking at the occasion, Mr. Murthy Veeraghanta, Chairman and CEO, VSoft Technologies, said “The future is in a digital world, and today, that future gets a little bit closer. VSoft’s domain experts with decades of experience in banking and technology have achieved breakthrough innovation in building a unique software, ‘ROOTS’ for cooperative banks by ushering flexibility and transparency in KCC loans for farmers.
He added, We would like to thank Government of Odisha, Hon’ble Chief Minister, SJ. Naveen Patnaik for providing us the privilege to join in this noble cause of providing ‘ROOTS’ powered Rupay Enabled Kisan Credit Cards to farmers. Now, farmers will be able to withdraw the exact amount they require. This will not only benefit the farmers as their money is safely kept in the bank, incurring interest until required, but also the overall health of the economy.”
How ‘ROOTS’ works
Built on a very simple notion, ‘ROOTS’ provides PACS members the much needed access to the rest of the banking system.
Each farmer is issued with a RuPay enabled Kisan Credit Card, which is linked to a savings account in the District Co-operative Central Bank (DCCB), already connected to the integrated banking system
The farmer can use this card at any RuPay enabled ATM/Micro ATM/POS device for operations on his Savings or KCC account
Once eligibility is determined, the loan amount is credited from the farmer’s PACS loan account into their DCCB Savings account online and then withdrawn directly from there. The reverse is true for payment of loans. This happens in real time
Options exist to provide various lines of Credit on the KCC account (short-term crop loans, medium-term dairy loans, farm mechanization loans, etc.)
The Savings account is seeded with the farmer’s Aadhaar Card in order to verify identity.