PM Modi launches 75 digital banking units in big boost to financial inclusion

Prime Minister Narendra Modi launched 75 Digital Banking Units today as part of the government’s policy to boost financial inclusion.

The digital banking units (DBUs) which will be launched via video conferencing are being set up to ensure that the benefits of digital banking reach every nook and corner of the country and cover all states and union territories.

Eleven public sector banks, 12 private sector banks and one small finance bank are participating in the endeavour.

Union Finance Minister Nirmala Sitharaman and Reserve Bank of India (RBI) Governor Shaktikanta Das also attended the launching ceremony via virtual mode.

According to the Prime Minister’s Office (PMO), DBUs will be brick-and-mortar outlets which will provide a variety of digital banking facilities to people such as the opening of savings accounts, balance-check, printing passbooks, transfer of funds, investment in fixed deposits, loan applications, stop-payment instructions for cheques issued, applications for credit and debit cards, tax and bill payment and nominations.

Union Finance Minister Nirmala Sitharaman in her budget speech for 2022-23 had announced the setting up of 75 digital banking units (DBUs) in 75 districts of the country to commemorate the 75 years of independence of the country.

The PMO statement said DBUs will enable customers to have cost-effective, convenient access and enhanced digital experience of banking products and services all through the year.

The units will also spread Digital Financial Literacy and special emphasis will be given to customer education on cyber security awareness and safeguards.

There will also be adequate digital mechanisms to offer real-time assistance and redress customer grievances arising from business and services offered by the DBUs directly or through business facilitators and correspondents.