Budget 2022: 75 digital banking units to be set up across 75 districts

The Finance Minister said in her Budget 2022 speech that 75 digital banking units will be set up across 75 districts. FM Nirmala Sitharaman said that this will be done with an aim to take digital banking to every citizen. The fintech boost comes in the run up to 75 years of Independence.

“In recent years, digital banking, digital payments and fintech innovations have grown at a rapid pace in the country. Government is continuously encouraging these sectors to ensure that the benefits of digital banking reach every nook and corner of the country in a consumer-friendly manner. Taking forward this agenda, and to mark 75 years of our independence, it is proposed to set up 75 Digital Banking Units (DBUs) in 75 districts of the country by Scheduled Commercial Banks,” stated the minister.

Industry experts believe that this Budget focused on technology and digitisation. "The thrust on digitisation is once again evident in the Budget, especially with the setting up 75 digital banking units in 75 districts in the country. The focus on payment platforms that are economical and user friendly with boost digital payments and contribute to the growth of the fintech sector," said Aashit Shah, Partner, J. Sagar Associates (JSA).

Dr. Jaijit Bhattacharya President, Centre for Digital Economy Policy Research said, "A Budget that is high on technology focus and technology led provisioning of services to vulnerable sections. The focus on digital economy through focus on start-ups, auctioning of 5G spectrum and GovTech adoption would surely boost the economy. Overall a Budget that is clearly forward looking."

The minister also said that 100 per cent of 1.5 lakh post offices will come on the core banking system to enable financial inclusion and access to accounts through net banking, mobile banking, ATMs, and online transfer of funds between post office accounts and bank accounts. “This will be helpful, especially for farmers and senior citizens in rural areas, enabling interoperability and financial inclusion,” she said.

Also read: Budget 2022 Live Updates: FM Sitharaman begins Budget speech