Union Budget 2022: Digital Banking Units to Be Set Up in 75 Districts by Scheduled Commercial Banks

Union Finance Minister Nirmala Sitharaman on Tuesday announced the introduction of Digital Rupee which will be issued by the Reserve Bank of India starting 2022-23, along with the setting up of 75 digital banking units in 75 districts by scheduled commercial banks.

Sitharaman, as per a release of Union Finance Ministry, said that in recent years, digital banking, digital payments, and fintech innovations have grown at a rapid pace in the country, and the government has been continuously encouraging them 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, the Finance Minister announced that it is proposed to set up 75 Digital Banking Units (DBUs) in 75 districts of the country by Scheduled Commercial Banks.

During the presentation of the Union Budget 2022-23 in the Parliament today, the Finance Minister said that the Central Bank Digital Currency (CBDC) will give a big boost to the digital economy.

"Digital currency will also lead to a more efficient and cheaper currency management system," she stated while adding that digital currency will use blockchain and other technologies.

Further, Sitharaman announced that in 2022, 100 percent of 1.5 lakh post offices will come on the core banking system enabling financial inclusion and access to accounts through net banking, mobile banking, ATMs, and will also provide 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.

As for the digital payments, the Finance Minister assured that the financial support for its ecosystem announced in the previous Budget will continue in 2022-23.

"This will encourage further adoption of digital payments. There will also be a focus to promote the use of payment platforms that are economical and user friendly," she said.