Digital Banking Units Will Further Financial Inclusion, Take Banks To Doorsteps Of Poor: PM Modi Dedicates 75 DBUs To Nation

At the event, PM Modi said that the government simultaneously worked on two things — improving the banking system and bringing transparency as well as financial inclusion. 

Prime Minister Narendra Modi dedicated 75 Digital Banking Units to the nation today.

New Delhi: Prime Minister Narendra Modi on Sunday dedicated to the nation 75 Digital Banking Units (DBU) in 75 districts across the country. In his address made virtually, the PM said that these digital banking units will further strengthen financial inclusion in the country and will take the banking system to the doorsteps of the poor and the last person in society. He said that these DBUs will provide "maximum facilities through minimum digital infrastructure and simplify lives of common people."

"These services will be free of paperwork and other hassles. These will have facilities as well as strong digital banking security," he added. 

PM Modi said that the government simultaneously worked on two things — improving the banking system and bringing transparency as well as financial inclusion. 

"We decided that banks themselves will go to the doorsteps of the poor. For this, we had to first reduce the distance between the poor and banks. We reduced the physical distance and psychological distance also which was the major hurdle," he said. 

He also highlighted the International Monetary Fund's remark on India's digital banking infrastructure saying that credit for the IMF applauding India's digital banking system goes to India's poor, farmers, and workers who "accepted new techniques with rationale and made it a part of their lives." 

"World Bank says that India has become a leader in ensuring social security through digitisation. Even the most successful people in the field of technology, the experts of the tech world are appreciating this system in India. They too are amazed by its success," he added. 

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Digital Banking Units

As part of the Union budget speech for 2022-23, the Finance Minister announced the setting up of the 75 DBUs in 75 districts of the country to commemorate the 75 years of independence of our country.

Earlier, a statement by the Prime Minister's Office (PMO) mentioned that the DBUs are being set up with the objective to ensure benefits of digital banking reach every nook and corner of the country and will cover all the States and Union territories. 11 Public Sector Banks, 12 Private Sector Banks, and one Small Finance Bank are participating in the endeavour.

It further stated that DBUs will be brick-and-mortar outlets that will provide a variety of digital banking facilities to people such as opening of savings accounts, balance-check, print passbook, transfer of funds, investment in fixed deposits, loan applications, stop-payment instructions for cheques issued, apply for credit/debit cards, view statement of account, pay taxes, pay bills, make nominations, etc. 

DBUs will enable customers to have cost effective, convenient access and enhanced digital experience of banking products and services throughout the year. They will spread Digital Financial Literacy and special emphasis will be given to customer education on cyber security awareness and safeguards, the PMO stated.

"There shall 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/ Correspondents," it added.