PM attributes India's sustained growth to 'digital banking'

New Delhi: The BJP government's efforts to replace pre-2014 "phone banking" with "digital banking" are what Prime Minister Narendra Modi credited for India's continued economic progress on Sunday.

He referred to the former UPA administration and stated that during "phone banking," banks were instructed over the phone as to who they had to lend money to and under what circumstances.

The economic progress of a country is directly linked to the strength of its banking system, he said after dedicating 75 Digital Banking Units (DBUs) to the nation.

The banking sector has become a medium for good governance and better service delivery, the Prime Minister said, adding Direct Benefit Transfer (DBT) has helped plug leakages and brought in transparency

The government has so far transferred Rs 25 lakh crore through DBT and another instalment under the PM-KISAN scheme will be transferred on Monday, he said.

Under the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme, a financial benefit of Rs 6,000 per year is provided to eligible farmer families, payable in three equal instalments of Rs 2,000.

With regard to DBUs, he said these will further financial inclusion and enhance the banking experience for citizens.

As part of the Union Budget 2022-23, Finance Minister Nirmala Sitharaman had announced setting up 75 DBUs in as many districts of the country to commemorate 75 years of India's independence.

The DBUs are being set up to ensure that the benefits of digital banking reach every nook and corner of the country.

Eleven banks in the public sector, 12 in the private sector and one Small Finance Bank are participating in the endeavour.

DBUs will be brick-and-mortar outlets which will provide a variety of digital banking facilities to people such as opening a savings account, account balance check, printing passbook, funds transfer, fixed deposit investments, loan applications, application for credit or debit cards, and bill and tax payments, among others.

DBUs will enable customers to have cost-effective, convenient access and enhanced digital experience of banking products and services all round year.

They will spread digital financial literacy and special emphasis will be given to customer education on cyber security awareness and safeguards.

With PTI inputs