By edukalive 
The Indian government plans to double the number of Digital Banking Units (DBUs) to around 200 within the next year to enhance financial inclusion, particularly in remote and underserved areas. These DBUs, which function as fixed-point business units equipped with digital infrastructure, currently offer ATM-like services such as cash deposits and withdrawals. The government aims to expand their scope to include insurance, pension schemes, and other financial inclusion products.
Key Points:
- Expansion Plan:
- The current count of DBUs is over 100, and the government intends to add a similar number by the end of the next fiscal year.
- New Services:
- DBUs will provide financial products like insurance and pension schemes in addition to their existing digital banking services.
- Assisted services will be introduced to facilitate ease of delivery.
- Financial Literacy Focus:
- To make DBUs effective, the government must promote financial literacy in rural and remote areas.
- Awareness about digital banking security and fraud prevention is crucial for success.
- Private Sector Involvement:
- The Centre may encourage private sector banks to set up DBUs in semi-urban areas to accelerate digital banking growth.
- Objective:The ultimate goal is to bring banking and financial services to people in unbanked or underserved regions, making banking more accessible and cost-effective.