75 digital banks to be set up by commercial banks in 75 districts

New Delhi: After the demonetization of 2016 and the COVID crisis, digital bankdigital and fintech payments

innovations have accelerated in the country.

The government said it is continuously encouraging these sectors to ensure that the benefits of digital banking reach every nook and cranny of the country in a consumer-friendly way.

To push this project forward, Finance Minister Nirmala Sitharaman has proposed the establishment of 75 Digital Banking Units (DBUs) in 75 districts across the country by regular commercial banks.

In her Budget 2022 speech, the Minister of Finance said that the financial support for the digital payment ecosystem announced in the 2021 budget will continue in 2022-23.

She said this would encourage further adoption of digital payments. Emphasis will also be placed on promoting the use of cost-effective and user-friendly payment platforms.

The government has also announced that all 1.5 lakh post offices in the country will be linked to the central banking system. This will allow people to access their account online and also transfer money to post office accounts and other banks.