The new type of banking set up introduced by the Indian government will provide services digitally and citizens without connectivity or computing devices can carry out banking transactions from the units in a paperless manner
Prime Minister Narendra Modi virtually inaugurating the digital banking units across India. (Credit: Press Information Bureau)
Indian Prime Minister Narendra Modi virtually inaugurated 75 digital banking units (DBUs) across 75 districts in the country with an aim to further promote financial inclusion and improve the banking experience for citizens.
The digital banking units are expected to let those who do not have information and communications technology infrastructure and systems (ICT infrastructure) for accessing banking services online.
The new banking set up will also help non-tech-savvy people to adopt digital banking. In a digital banking unit, the products and services will be provided to customers in two modes, which are self service mode and digital assistance mode.
According to Prime Minister Modi, in such a banking setup, the government strives to deliver maximum services with minimum infrastructure, and all this will take place digitally without the need for any paperwork.
Besides, the Prime Minister said that digital banking units will streamline the banking procedure while also offering a strong and secure banking system.
Modi said: “People living in small towns and villages will find benefits like transferring money to availing loans. Digital Banking Units are another big step in that direction which is going on in the country to make the life of common man of India easier.”
Compared to traditional bank branches, digital banking units provide round-the-clock banking services including cash deposits and withdrawals. The new type of banking set up will provide services digitally and people without connectivity or computing devices can carry out banking transactions from the units in a paperless manner.
In assisted mode, bank staff will be available to assist and guide citizens with banking transactions. Additionally, digital banking units are expected to help in providing digital financial literacy and generate awareness for embracing digital banking.
Reserve Bank of India (RBI) Governor Shaktikanta Das said: “The DBUs will also provide services related to certain identified government sponsored schemes. The products and services in these Units will be provided in two modes, namely, self-service and assisted modes, with self-service mode being available on 24*7*365 basis.
“The banks are also free to engage the services of digital business facilitators and business correspondents to expand the footprint of the DBUs.”