MUMBAI: Coca-Cola India and its largest bottling partner Hindustan Coca-Cola beverages have partnered the State Bank of IndiaBSE 0.68 % (SBI) to enable over 2.6 million retailers and 5000 distributors in conducting business transactions digitally.
“All our distributors remit to us on an electronic basis only so all that is already digitized. This whole approach is to ensure that the consumer to retailer transactions become digital so that the payment from the retailer to the distributor can also be digital,” said T. Krishnakumar, CEO, HCCBPL.
As per the agreement, SBI will educate retailers on digital transactions and even a customised payment solution for retailers and distributors selling Coca-Cola products will be developed.
As an incentive for going cashless, retailers and merchants will also be able to access loans and other financial services from the bank
“The fact that they deal in cash ensures that they do not become included in the banking system so they turn to informal system that lends at pretty high rates of interest,” said Arundhati Bhattacharya, chairman, SBI.
This story was originally published on The Economic Times.