HDFC, Vodafone bring m-paisa to India’s unbanked

Microfinance Focus, November 28, 2011: HDFC Bank in collaboration with Vodafone India has launched ‘HDFC Bank MobileBank Account with Vodafone m-paisa’, bringing mobile banking to millions of unbanked Indians.

HDFC Bank has appointed a Vodafone India subsidiary company as a Corporate Business Correspondent (BC), thereby allowing the Vodafone’s select retailers to represent the bank as sub-agents.

By providing banking transactions at such sub-agents, this HDFC Bank-Vodafone India partnership effectively delivers last mile access to remote areas.

Through this arrangement, customers can now perform basic banking transactions on the mobile phone and even deposit and withdraw cash, at appointed Vodafone m-paisa outlets, without having to go to bank branches.

In Rajasthan, the first state, where this national partnership has been implemented, over 2,200 retailers across 320 villages and 54 towns are already operational in opening HDFC Bank MobileBank Accounts with Vodafone m-paisa.

RBI Deputy Governor, Dr. K.C. Chakrabarty, launched the HDFC-Vodafone financial inclusion initiative in Jaipur, Rajasthan. HDFC Bank MD, Mr. Aditya Puri and Vodafone India Director – Business Operations, Mr. Sunil Sood were present on the occasion.

HDFC Bank has a Board-approved plan to bring 10 million families under financial inclusion over a five-year period and this initiative is a step towards achieving that objective, said Mr. Rahul Bhagat, Country Head - Retail Liabilities, Marketing& Direct Banking Channels, HDFC Bank.