PM Modi dedicates 75 Digital Banking Units to nation
Prime Minister Narendra Modi on Sunday dedicated to the nation 75 Digital Banking Units, including two of Jammu and Kashmir Bank, via video-conferencing.
Of the two Digital Banking Units (DBUs) of Jammu and Kashmir Bank, one is the SSI branch at Lal Chowk in Srinagar and the other is the Channi Rama branch in Jammu. The function at Lal Chowk here was attended by Union Minister of State for Education Subhas Sarkar, who was in the Valley as part of the third phase of the central government’s public outreach programme, officials said.
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Member of Parliament from Srinagar and National Conference (NC) President Farooq Abdullah was also present on the occasion, they added. As part of the Union Budget 2022-23, Finance Minister Nirmala Sitharaman had announced the setting up of the 75 DBUs in as many districts of the country to commemorate 75 years of India’s independence. The DBUs are being set up to ensure that the benefits of digital banking reach every nook and corner of the country.
Eleven banks in the public sector, 12 in the private sector and one Small Finance Bank are participating in the endeavour. DBUs will provide a variety of digital banking facilities to people such as opening a savings account, account balance check, printing passbook, funds transfer, fixed deposit investments, loan applications, application for credit or debit cards, and bill and tax payments, among others. Out of 12 public sector lenders, 11 opened nearly two-thirds of the total 75 DBUs, while 12 private sector lenders and one small finance bank together opened only one-third.
While public sector lenders opened 48 DBUs, the private sector managed to open 27 across various states, as per the data provided by the Reserve Bank of India (RBI).Only the Central Bank of India, which is still under the Prompt Corrective Action framework of RBI could not participate in the endeavor. The country’s biggest lender State Bank of India opened a maximum of 12 DBUs followed by the third biggest Bank of Baroda with 8. However, the second biggest state-owned lender Punjab National Bank opened only 4 DBUs.
In the private sector space, leading lenders HDFC Bank and ICICI Bank opened four each, followed by Axis Bank with 3 and Kotak Mahindra Bank 2 in two districts. Jana Small Finance Bank opened two DBUs–one each in Bihar and Jharkhand, as per the RBI Data. DBUs are brick-and-mortar outlets which will provide a variety of digital banking facilities to people such as opening a savings account, account balance check, printing passbook, funds transfer, fixed deposit investments, loan applications, application for credit or debit cards, and bill and tax payments 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.
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