HDFC Bank acquires 1.5% Stake in CSC Grameen E-Store, 10 Crores Deal Finalise

HDFC Bank acquired CSC Grameen e-store was launched in April last year, revenue crossed Rs 250 crore in 1 year
HDFC Bank acquires 1.5% Stake in CSC Grameen E-Store, 10 Crores Deal Finalise

HDFC Bank has taken a major step to provide banking to every village. The bank has purchased a 1.5% stake in the government-run CSC Grameen e-store. The bank has bought this stake for Rs 10 crore. In December last year, Tata Digital, a Tata group subsidiary, also bought a 1.5% stake in the CSC Grameen e-store. Only after this, HDFC Bank has taken this step.

HDFC Bank wants to provide banking services in rural areas

According to a top executive, the bank is looking at expanding the platform to extend its products and services to rural areas. The bank especially wants to extend its banking portfolio to rural areas. That is why the bank has bought a stake in the CSC Grameen e-store.

Rural e-store was launched in April last year

Image Credit: Business Standard
Image Credit: Business Standard

CSC e-Governance Services India launched Grameen e-Store last year. The store offers a wide range of products from local handicrafts, groceries, and consumer durables. Within 1 year of the launch, the revenue of rural e-stores has reached Rs 250 crore. Smita Bhagat, group head of government and institutional businesses at HDFC Bank, says this small stake purchased under strategic investment reflects the bank's promise of a rural commerce model.

Service is provided through 4 lakh common service centers

The Grameen e-Store serves 4 lakh Common Service Centers (CSC). These Common Service Centers are operated under the Ministry of Electronics and IT. It is an ambitious rural e-commerce venture of the government. Apart from HDFC Bank, well-known brands like Tata Croma, Pepsi, Coca-Cola, Bharat Petroleum are associated with rural e-stores. Dinesh Tyagi, MD, CSC e-Governance Services, says the fund will be used to strengthen technology, distribution channels, and product portfolios.

HDFC Bank Launches Chatbot in association with CSC

HDFC Bank has launched chatbot 'Ava' in association with CSC. Through Ava, CSC-linked rural-level entrepreneurs will be able to know about HDFC Bank's products and services. This service will be available 24 hours. At present 1,27,348 village-level entrepreneurs are availing HDFC Bank linked services, out of which 15,791 are business correspondents who serve customers from banking outlets in 685 districts in India.

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