In a significant move, Punjab National Bank (PNB), a state-owned bank, has announced a strategic partnership with the Gujarat Cooperative Milk Marketing Federation Ltd (GCMMFL), popularly known as Amul. The collaboration aims to provide financial services to Amul’s extensive supply network across India under the MUDRA (Micro Units Development and Refinance Agency) scheme.
The partnership was formalized through a memorandum of understanding signed between PNB and Amul on July 1, as per an official statement from the bank.
Under this collaboration, PNB will offer small-ticket financing to various entities within Amul’s supply network. This includes financing for Amul’s retailers, wholesale dealers, area milk distributors, and exclusive Amul preferred outlets, such as milk parlours. The financing will be made available through the MUDRA scheme, which focuses on supporting microenterprises and small businesses.
Apart from financial assistance, the partnership will also encompass the integration of various digital channels, including QR codes, point of sale (POS) systems, and Unified Payment Interface (UPI). These digital solutions will streamline supply chain finance and facilitate the collection of equated monthly installments (EMIs) digitally. Additionally, the collaboration will provide working capital limits to the network members, ensuring smooth operations and growth opportunities for them.
The joint efforts of PNB and Amul are expected to make a positive impact on more than 11 lakh retailers, wholesale dealers, and other stakeholders associated with Amul’s extensive supply chain.
The MUDRA scheme, initiated by the Government of India, has been instrumental in promoting financial inclusion and supporting small-scale enterprises across the country. By partnering with Amul, PNB seeks to leverage the vast reach of one of India’s most renowned cooperatives and contribute to the economic empowerment of its dealers and distributors.
Through this association, both PNB and Amul are determined to strengthen the backbone of Amul’s supply network and drive sustainable growth in the dairy industry while fostering financial stability and prosperity among small businesses and entrepreneurs.
