New Delhi: Prime Minister Narendra Modi said on Monday that the initiative of setting up digital banking units will strengthen the idea of financial inclusion and improve banking experience for citizens. The Prime Minister affirmed that in a digital banking setup, the government aims to provide maximum services with minimum infrastructure. Moreover, this will happen digitally without involving any paperwork. It will also simplify the banking procedure while providing a robust and secure banking system. He added that the initiative will make lives of common people easier.
The PM stated that the aim of the government is to empower the common citizen and create an enabling environment for them. As a result, policies were made keeping in mind the welfare of common people. He pointed out the two areas on which the government worked simultaneously. Firstly, it focused on reforming, strengthening, and making the banking system transparent, and secondly, it worked on financial inclusion.
Highlighting the achievements of digital infrastructure, the PM said, "When financial partnerships are combined with digital partnerships, a whole new world of possibilities opens up. A huge example like UPI is before us. India is proud of this as it is the first technology of its kind in the world."
He informed that today 70 crore indigenous Rupay cards are in operation. "This combination of technology and economy is enhancing the dignity and affordability for the poor and empowering the middle class, while at the same time it is also eliminating the digital divide of the country," he said.
The Prime Minister also mentioned that fintech is at the heart of India's policies and efforts and it is playing a key role in shaping the future. Digital banking units will further expand this capability of fintech.
PM Narendra Modi also urged the small business owners from villages to completely move towards digital transactions. He also requested banks to connect 100 merchants with them for going totally digital for the benefit of the country.
The online video conferencing event was attended by the Union Minister of Finance, Nirmala Sitharaman and Governor of Reserve Bank of India, Shaktikanta Das. Chief Ministers, Union Ministers, State Ministers, Members of Parliament, banking leaders, experts and beneficiaries also joined the event online.
As part of the Union Budget speech for 2022-23, the finance minister announced setting up the 75 DBUs in 75 districts to commemorate our country's 75 years of independence. The DBUs are being set up with the objective to ensure the 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 will be contributing to this initiative.
DBUs will be brick-and-mortar outlets which will provide a variety of digital banking facilities to people such as opening savings accounts, balance-check, print passbooks, transfer of funds, investment in fixed deposits, loan applications, stop-payment instructions for cheques issued, applying 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 emphasise on educating customers on cyber security. Also, there shall be adequate digital mechanisms to offer real-time assistance and redress customer grievances arising from business and services provided by the DBUs directly or through business facilitators/ correspondents.
(With PTI inputs)