Tea garden payments go digital -Responding to a proposal made by the Tea Association of India (TAI), State Bank of India (SBI) set up CSPs in five tea gardens in the Terai belt today. SBI’s authorized ‘Banking Correspondent’ Save Solutions Private Limited (SSPL) will run those CSPs.

SNS, 11.09.20: The gardens in north Bengal have finally started the digital payment system among workers with the help of Customer Service Points (CSP), and in doing so, it will virtually be able to save 2 percent TDS on cash withdrawals in excess of Rs 1 crore with effect from 1 September 2019.

Responding to a proposal made by the Tea Association of India (TAI), State Bank of India (SBI) set up CSPs in five tea gardens in the Terai belt today. SBI’s authorized ‘Banking Correspondent’ Save Solutions Private Limited (SSPL) will run those CSPs.

Notably, TAI Secretary, Terai Region, Sumit Ghosh, had proposed to the SBI authorities on 19 August for setting up the CSPs in the gardens.

Today, SBI officials, in association with the SSPL, TAI and management of its member gardens, inaugurated the CSP at Thanjhora Tea Garden.

“Like Thanjhora, the CSP was inaugurated at Atal, Satvaiya, Pahargoomiah and Dagapur in the first phase. In the second phase, such CSPs will be set up at Patharjhora, Kurti, Gayaganga, Hansqua, Tirrihannah, New Chumta, Matigara, Nischintapur, Belgachi, Girischandra and others in both Terai and Dooars region,” Mr Ghosh said.

Asked to comment, Sanjib Kumar Ray, the Regional Manager (Financial Inclusion and Micro Market), State Bank of India, said: “We plan to set up CSPs in almost all tea gardens with the help of our authorised Banking Correspondent.”

“Customer Service Points will help the workers of tea plantations come under the banking services at their doorsteps and it will save their time and build a savings habit. Tea workers will be able to send/receive remittances through this account. RUPAY Debit-cum-ATM card will be issued to them, which has inbuilt accident insurance coverage,” Mr Ray said, adding, “As the workers are under the banking service, they will be eligible to come automatically under three central government Social Security Schemes like the Prime Minister Suraksha Bima Yojona (PMSBY) for accidental death benefit, Prime Minister Jeewan Jyoti Bima Yojona (PMJJBY) for normal death benefit and the Atal Pension Yojona (APY).”

“Workers as account holders will be eligible for loans in the future and may avail of need-based credit facility from the bank,” Mr Ray added.

According to him, planters need not handle cash and payment and that payment will be directly credited to the workers’ accounts. Sources have said that workers, after receiving their payment, do not deposit money in banks for savings and they traditionally pay back their lenders and make other payments in the local markets.