The government has facilitated the establishment of seventy-five Digital Banking Units (DBUs) in seventy-five districts of India through registered commercial banks to start the growth of the digital economy.
Digital banking brings all regular banking activities online, eliminating paperwork like payment slips, cheques, drafts, and more.
According to industry stakeholders and participants, the action will provide access to the rural market for service providers in addition to boosting credit flows.
“The budget recommends establishing seventy-five Digital Banking Units (DBUs) in seventy-five districts across the country by regular operating banks. This proposal aligns with our ongoing digital banking activities,” explained Dinesh Khara, President of SBI.
Shanti Lal Jain, Managing Director (MD) and CEO of the Indian Bank, said the move will speed up funding and increase the flow of credit to the economy.
As per Anand Kumar Bajaj, Founder, Managing Director, and CEO of PayNearby, in order for India to become a digital economy, rural areas must receive access to digital resources just as they do in urban areas.
“To augment this, creating seventy-five digital banking departments in seventy-five districts of the country is a commitment to providing advanced technology at the foundation of the pyramid. This move ensures that the benefits of digital banking reach every corner of the country in a consumer-friendly way,” he said.
According to the Founder of Pick right Technologies, Archana Elapavuluri, adding seventy-five digital banking units by scheduled commercial banks, opening full banking services in one and a half lakh Post Offices in India, and allowing interoperability throughout all banks for digital transactions will provide a huge push to fintech companies hoping to expand into rural areas that are currently limited by digital awareness.
Given the rapid expansion of online banking, money transfer, and FinTech innovation, developing digital infrastructure to enable digital banking, which has huge potential, was necessary, according to Mandar Agashe, VC, and MD of Sarvatra Technologies.