Prime Minister Narendra Modi will donate 75 Digital Banking Units (DBUs) to the nation on October 16, 2022 in order to increase financial inclusion. PM Modi will also address the crowd through video conference at around 11 AM, according to a statement from the Prime Minister’s Office.
As part of the Union Budget Speech for 2022-23, Finance Minister Nirmala Sitharaman announced the establishment of 75 DBUs in 75 districts across India to honour our country’s 75th year of independence.
These DBUs are being established across all States and Union Territories with the goal of ensuring that the benefits of digital banking reach every corner of India. Eleven public sector banks, twelve private sector banks, and one small finance bank are also involved.
Dilip Modi, Founder, Spice Money, talked about the announcement, saying, “It is heartening to hear PM Modi’s initiative dedicating 75 Digital Banking Units to the nation on 75 years of Indian Independence. We welcome this move, which has the future firmly in focus and aims at offering a level playing field for existing and upcoming entities while avoiding any regulatory or policy arbitrage. Digital operations in our country have risen exponentially over the last few years because of the increasing internet and smartphone penetration, with the pandemic acting as a catalyst. Several consecutive steps by the government over the past few months have been in acknowledgment of the role of digital technology and fintech players, in catering to the underserved regions of the country.
We have been fortunate to be a part of this journey, providing customised solutions to the hinterlands of India, to cater to the unique needs of these regions. This will further help to get a robust banking infrastructure in the rural areas that contribute greatly to the country’s GDP and where a majority of the population resides. Not only will this initiative aid in streamlining efforts towards bringing this significant part of India’s underserved population to the fore of the formal banking sector, but also encourage more players to enter the market which will benefit the citizens of Bharat, and ultimately help them achieve financial freedom.”
According to the government, these DBUs will be brick and mortar locations where people can open savings accounts, balance-check, print passbooks, transfer funds, invest in fixed deposits, loan applications, stop-payment instructions for cheques issued, apply for credit/debit cards, view statements of account, pay taxes, pay bills, make nominations, and more.
Furthermore, these DBUs will provide users with cost-effective and accessible access to banking products and services throughout the year. These DBUs will also promote Digital Financial Literacy, with a focus on client education on cyber security knowledge and precautions.
