PM Modi to inaugurate 75 digital banks on August 15. Check details

File image of PM Narendra Modi

Prime Minister Narendra Modi will inaugurate 75 digital banking units (DBUs) across 75 districts on August 15 to commemorate 75 years of India's independence, according to a report. These units will be totally paperless, and will be utilised as digital financial literacy centres.

The Centre has finalised 75 districts and banks have been asked to set up infrastructure and train manpower for these DBUs, the Economic Times reported quoting officials on May 6.

The government has identified districts including Leh, Srinagar, Lakshadweep, Aizawl, Kota, Nainital, and Lucknow. The selected financial institutions have already initiated work to have these units operational by July 2022.

The Reserve Bank of India (RBI) on April 8 released guidelines for banks to set up DBUs. This follows an announcement made in the Budget for setting up of 75 DBUs.

A DBU is a specialised fixed point business unit/hub housing certain minimum digital infrastructure for delivering digital banking products and services. The objective of a DBU is expansion of digital financial services and financial inclusion.

As per the guidelines, scheduled commercial banks with past digital banking experience are permitted to open DBUs in Tier 1 to Tier 6 centres without having the need to take permission from the Reserve Bank of India in each case.

The DBUs of the banks will be treated as banking outlets, the RBI said, adding each DBU needs to be housed distinctly, with separate entry and exit provisions. They will be separate from an existing banking outlet with formats and designs most appropriate for digital banking users, the central bank said.