To tackle cash crunch post demonetisation, ICICI Bank focuses rural digitisation

Amid nationwide cash crunch after the sudden scrapping of high value currency by government, ICICI Bank on Monday launched an initiative to deepen the reach of digital technologies in 100 villages in as many days.

The initiative will focus on increasing access to banking by deploying tools like e-KYC and SMS or USSS-based services, train villagers for sustainable livelihoods and provide credit linkages to enhance livelihood opportunities.

"Post-demonetisation, digitisation is the way to go and we  want to give a special focus on the rural economy," Managing Director and Chief Executive Chanda Kochhar said in a concall.

Claiming this is the largest such programme in the country, Kochhar said the initiative is based on a template created by the largest private bank at Akodara village in Gujarat's Sabarkantha district where it has implemented the concept of a 'digital village'.

Kochhar said a bulk of transactions in Akodara follow cashless mode now as the bank has selected to implement digital alternatives at the milk society, targeting the biggest local economic activity.

This initiative aims to replicate that model by selecting predominant economic activity of every village, Kochhar added. She declined to share the costs to be incurred by the lender in rolling out the digitisation scheme.