Average banking sector with good governance, better service delivery: PM Modi

Highlighting India’s progress towards financial inclusion and digital economy, Prime Minister Narendra Modi said on Sunday that the banking sector has become a vehicle for good governance and better service delivery in the country.

In a bid to promote financial inclusion, Prime Minister Narendra Modi on Sunday dedicated 75 Digital Banking Units (DBUs) to the nation.

Union Finance Minister Nirmala Sitharaman and Reserve Bank of India (RBI) Governor Shaktikanta Das also attended the launch ceremony via virtual mode.

Speaking on the occasion, Prime Minister Modi said the 75 digital banking units will promote financial inclusion and significantly improve citizens’ banking experience.

DBUs are a step towards simplifying the life of the common man. He stated that DBU is a system providing maximum services with minimum digital infrastructure.

“Digital Banking Units are important in the ongoing campaign to make everyday life easier for ordinary people. It is a special banking facility that will provide maximum services through minimum digital infrastructure. These services will be paperwork-free and other hassles. These will have facilities like as well as strong digital banking security,” he said.

He said the central government has worked simultaneously on two fronts – first, improving the banking system, strengthening it and bringing transparency; and second, financial inclusion.

The Prime Minister said the bank has today gone beyond financial transactions and established itself as an example of good governance and a better way of delivering services. Today, this system has become an engine of growth for MSMEs and private institutions.

“The banking sector has become a vehicle for good governance and better service delivery. JAM trinity (Jan Dhan, Aadhar and Mobile) has contributed immensely in the fight against corruption. UPI has opened up new possibilities for India” , did he declare.

The prime minister said the central government had given top priority to ensuring banking services reached the last mile.

He said: “We decided that the banks themselves would go to the doorsteps of the poor. For this, we first had to reduce the distance between the poor and the banks. We have reduced the physical distance as well as the psychological distance. priority to the establishment of banks in remote areas.”

“Today, over 99% of villages in India have either a bank branch, bank outlet or Banking Mitra within a 5 km radius. Today, the number of bank branches for every million adults in the country is superior to countries like Germany, China and South Africa,” the prime minister added.

Prime Minister Modi said the International Monetary Fund (IMF) appreciates India’s digital banking infrastructure.

“The credit goes to the poor, farmers and working people of India who have bravely embraced new techniques and made it a part of their lives. When financial participation connects with digital participation, a new world of possibilities opens up” , did he declare.

The Prime Minister said India had achieved sustained growth by replacing “telephone banking” with “digital banking”.

The establishment of 75 DBUs in 75 districts of the country was done to commemorate the 75 years of independence of the country.

According to the Prime Minister’s Office (PMO), DBUs will be physical outlets that will provide a variety of digital banking services to people such as opening savings accounts, checking balance, printing passbooks, transfer of funds, investment in fixed deposits, loan applications, stop payment instructions for issued checks, credit and debit card applications, payment of taxes and bills and appointments.

The PMO statement says DBUs will enable customers to have cost-effective and convenient access and an enhanced digital experience of banking products and services throughout the year.

DBUs are set up to ensure that the benefits of digital banking reach every nook and cranny of the country and cover all states and union territories. Eleven public sector banks, 12 private sector banks and a small financial bank are participating in the effort.

He said they will spread digital financial literacy and there will be a particular focus on educating customers on cybersecurity awareness and safeguards.

In addition, there must be adequate digital mechanisms to offer real-time assistance and resolve customer complaints arising from the business and services offered by DBUs directly or through business facilitators and correspondents.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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