India Broadens Financial Inclusion Push by Launching 75 Digital Banking Units Across Rural Areas

India is trying to widen its financial inclusion push by launching 75 digital banking units across small towns and villages. The country has said that this move will be able to help them bring financial services and even literacy to more of their citizens.

Digital Banking Units to be Set Up in Collaboration with Over Public and Private Banks

According to the story by Tech Crunch, the digital banking units will be set up in collaboration with more than 20 public and private banks. The digital banking units were described as "brick-and-mortar outlets, " including tablet and internet services to provide different bank functions.

The different functions these digital banks are expected to carry out include helping individuals and small businesses perform verifications, open savings accounts, make transactions, access government-identified schemes, and get insurance and loans.

Governor of the Reserve Bank of India Said the Self-Service Mode Will be Available 24/7 All Year Round

The physical outlets will reportedly be spread across all Indian union territories and states. They will also be providing service options in two modes.

As per Shaktikanta Das, the Governor of the Reserve Bank of India, the self-service mode will be available 24/7 throughout the year. He also specified that the banks would be free to engage the services of different digital businesses and correspondence to help expand the DBUs' footprint.

Prime Minister Narendra Modi Gives a Statement Regarding the Move

Das noted that the units would also help them offer digital assistance zones. These zones will help them answer queries from individuals and small businesses to get inputs and grievances.

Prime Minister Narendra Modi noted that being able to avail of banking services has usually been a problem for people in small towns or villages. Despite over a billion bank accounts, people living in remote areas need to take a day off from work for banking-related actions and activities in nearby cities.

Modi Said the Move Will Help Remove Psychological Distance as Well

Modi noted that they had prioritized trying to ensure that banking services would be able to reach the last mile. They noted that they would not only remove the physical and psychological distance behind using the newer technology.

The digital banking units are usually part of the year-long efforts of Modi's government to help serve people in hard-to-access places across the country. The government, back in 2014, launched a scheme called Jan Dhan Yojana to help citizens access banking and financial services.

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The Prime Minister Said that 'Today, the Entire Country is Experiencing the Power of Jan Dhan Bank Accounts'

Modi announced, "Today, the entire country is experiencing the power of Jan Dhan Bank accounts." The move has opened a new way for those struggling to get loans without collateral and provides Direct Benefit Transfer to the accounts of official target beneficiaries.

The Prime Minister stated that the accounts were an important modality to help them provide farmers with homes, gas subsidies, toilets, and other welfare schemes, especially for farmers.

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Written by Urian B.