Budget 2022 | FM Nirmala Sitharaman proposes to set up 75 digital banking units; link 100% of post offices to Core Banking

In her Budget 2022 speech, FM Nirmala Sitharaman also said that financial support for digital payment ecosystem announced in the previous budget will continue in 2022-2023 as well, encouraging further adopting of digital payments.

Finance Minister Nirmala Sitharaman in the Union Budget 2022, proposed to set up 75 digital banking units in 75 districts across India by scheduled commercial banks. The FM announced the initiative to celebrate India’s 75 years of independence and to push the benefits of digital banking in every nook and corner of the country.

In her Budget 2022 speech, Sitharaman also said that financial support for the digital payment ecosystem announced in the previous budget will continue in 2022-2023 as well, encouraging further adoption of digital payments.

Also read: Union Budget 2022 Live Updates

The FM also said that 100 percent of the 1.05 lakh post offices will come under the core banking system. This will enable financial inclusion and access through net banking, mobile banking, ATMs. It will provide access to the online transfer of funds between post office accounts and bank accounts.

The move will be helpful especially for farmers and senior citizens in rural areas. The government will also promote the use of payment platforms that are economical and user-friendly.

The FM also earmarked Rs 60,000 crore for the Jal Jeevan Mission which aims to provide potable water to 3.8 crore households in 2022-23. The Jal Jeevan Mission was launched in August 2019 to provide safe drinking water to all rural households by 2024. It was extended to urban areas in the previous Budget to provide all households in those areas with a tap connection within five years.