PM Modi dedicates 75 digital banking units to the nation: A lowdown

Union finance minister Nirmala Sitharaman had announced the setting up of the 75 Digital Banking Units (DBUs) in 75 districts to commemorate 75 years of India's independence from British rule.

Prime Minister Narendra Modi on Sunday dedicated 75 Digital Banking Units (DBUs) to the nation via video conferencing. Speaking at the event, PM Modi said that the Digital Banking Units are one more significant step in the ongoing campaign to simplify the lives of common people.

Prime Minister Narendra Modi at the launch of 75 Digital Banking Units.

“It's a special banking facility that will provide maximum services through minimum digital infrastructure,” he said.

The prime minister noted that the government has worked on two things simultaneously.

"First, improving the banking system, strengthening it and bringing transparency. Second, we did financial inclusion."

As part of the Union budget 2022-23, finance minister Nirmala Sitharaman had announced the setting up of the 75 DBUs in 75 districts to commemorate 75 years of India's independence from British rule.

What is the objective of the DBUs?

The Digital Banking Units are being set up to ensure that the benefits of digital banking reach every nook and corner of the country. The DBUs will also cover all the states and the Union territories, the release said.

As many as 11 public sector banks, 12 private banks and one small finance bank are participating in the endeavour.

Functions of DBUs

The brick-and-mortar DBU outlets will provide a variety of digital banking facilities to people such as opening of savings account, 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, among others.

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

“Also, there shall 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.