Narendra Modi,Prime Minister
Today the number of branches per one lakh adult citizens in India is more than countries like Germany, China and South Africa”, he added
The PM informed that fintech is at the heart of India’s policies and efforts, and it is playing a key role in shaping the future. Digital banking units will further expand this capability of fintech
New Delhi;
Prime Minister Narendra Modi on Sunday dedicated 75 Digital Banking Units (DBU) across 75 districts to the nation via video conferencing.
Addressing the gathering, Modi started by stressing that the 75 Digital Banking Units (DBU) will further financial inclusion and enhance banking experience for citizens.
“DBU is a big step in the direction of Ease of Living for the common citizens”, he said.
The PM informed that fintech is at the heart of India’s policies and efforts, and it is playing a key role in shaping the future. Digital banking units will further expand this capability of fintech.
“If Jan Dhan accounts had laid the foundation of financial inclusion in the country, then Fintech would form the basis of financial revolution”, he said.
Recalling the traditional ways of the past where people had to go to the bank, the PM said that this government transformed the approach by bringing the bank to the people.
“We have given top priority to ensure that banking services reach the last mile”, he said.
A huge change from the days when it was expected that poor will go to the bank to a scenario when the banks were going on the doorstep of the poor. This involved reduction of distance between the poor and the banks.
“We not only removed the physical distance but, most importantly, we removed the psychological distance.” Highest priority was given to cover far flung areas with banking.
Modi informed that today more than 99 percent of villages in India have a bank branch, banking outlet or a ‘banking mitra’ within 5 km radius.
“Extensive Post Office network too was harnessed via India Post Banks for providing the banking needs to the common citizens”, he said. “
Today the number of branches per one lakh adult citizens in India is more than countries like Germany, China and South Africa”, he added.
Despite initial misgivings in certain sections, the Prime Minister said, “today the entire country is experiencing the power of Jan Dhan Bank accounts.”
He informed that these accounts enabled the government to provide insurance to the vulnerable at a very low premium.
“This opened the way for loans for the poor without collateral and provided Direct Benefit Transfer to the accounts of the target beneficiaries. These accounts were the key modality for providing homes, toilets, gas subsidy, and benefits of schemes for farmers could be ensured seamlessly”, he said.
Modi acknowledged the global recognition for India’s digital banking infrastructure.
“The IMF has praised India’s digital banking infrastructure. The credit for this goes to the poor, farmers and labourers of India, who have adopted new technologies, made it a part of their lives”, he emphasised.
The Prime Minister informed that in such a banking setup, the government aims to provide maximum services with minimum infrastructure, and all of this will happen digitally without involving any paperwork.
It will also simplify the banking procedure while also providing a robust and secure banking system.
“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”, he added.
“We not only removed the physical distance but, most importantly, we removed the psychological distance.”
He informed that today 70 crore indigenous Rupay cards are in operation, a vast change from the days of foreign players and the elite nature of such products.
“This combination of technology and economy is enhancing the dignity and affordability for the poor and empowering the middle class, while at the same time it is also eliminating the digital divide of the country”, he said.
He also praised the role of DBT in eliminating corruption and said that more than Rs 25 lakh crore have been transferred in various schemes via DBT.
He informed that he will transfer the next instalment to the farmers tomorrow.
Referring to the government’s announcement of the launch of a digital currency based on blockchain technology, Modi pointed out “Be it digital currency in the coming times, or digital transactions in today’s time, apart from the economy, many important aspects are associated with them”.
He listed the savings, elimination of the hassle of physical currency and environmental benefits as key advantages.
In concluding his address, the Prime Minister urged the small business owners from villages to completely move towards digital transactions. He also urged banks to connect 100 merchants with them for going totally digital for the benefit of the country.