Financial services

Revolutionizing financial services: 75 digital banking hubs in 75 neighborhoods

Over the past few years, India has turned a corner and placed a new emphasis on ensuring that the new era requires a new mechanism. This new mechanism shares the immense benefits of technology to humanity, as seen with the hugely successful Digital India campaign. In what has become a huge catalyst for promoting so many transactions that can take place through digital means, the Digital India campaign has empowered the ordinary citizen to make extensive use of technology on this front.

Technology-based digital platforms have gained popularity among various sections of society, including educated semi-urban and rural classes, over the past decade. Although the switch to these online platforms was a foregone conclusion, the fact that the same thing happened so quickly took everyone by surprise. Notwithstanding the presence of private Indian non-banking financial players like PhonePe or PayTM as well as international giants like GPay, the most successful and user-friendly interface among them was that of BHIM (Bharat Interface for Money) launched by the government. from India.

Continuing this trend of promoting ease of living within the nation, the Indian government has been able to add new services to it. Adding a new dimension to the push towards digital finance, an even more advanced, efficient, transparent and reliable means has been found through which 75 digital banking units have been launched in 75 districts across the country. From now on, 11 public sector banks as well as 12 private banks would participate in this initiative. In the last half-decade in particular, banks have been able to reach record numbers of poor people through which financial inclusion has received a huge boost.

Banking sector reforms and this push for inclusion have connected the poor to the banking system. More than the physical distance from these banks and its branches, the psychological distance between those in rural India in particular, these banks and their branches has also been reduced. Top priority has been given to ensure that banking services reach to the remotest corners of the country which has further enabled more than 99% of the total villages in India to have a bank branch, outlet bank or a bank correspondent / mitra within a radius of 5 km. Ray. To further facilitate this, the huge network of interconnected post offices in the country has become an integral part of the banking industry through the India Post Bank.

These banking services which have reached common Indians through BHIM, RuPay, e-Rupi and Jan Dhan have opened new doors of possibilities. Likewise, the digital banking unit will ensure that these banking services are free from paperwork and other hassles. Banking will be easier than ever with convenience and security. In a village or a small town, sending money or taking out loans would become much more convenient with the online presence maintained through these digital banking units.

These digital banking units, as part of the broader financial technology or more commonly known world of “FinTech”, would serve as a further extension into a new historical era. Announced in the Union budget earlier this year, these units would be specialized, fixed-point units that would help those who do not have their own computers, laptops or smartphones to benefit from digital banking services by visiting these units. All these facilities would be provided with wide internet connection in these digital banking units. Opening a savings account, transferring cash, investing in a fixed deposit, applying for a loan, applying for a credit card, checking account details and stopping payment instructions. payment for issued checks would all be part of these digital banking units.

It is required to promote digital financial literacy with a focus on educating customers (especially of the rural setting) on ​​cyber security, awareness and security measures. In a situation like the grim pandemic where distancing us from each other has taken on a form all its own, these digital banking units bring forward an interesting aspect of contactless payment mechanisms, also without the need for an internet network. client-side staff. Therefore, for a large population, these units should also be the first step towards digital switchover in a responsible and transparent way. Interestingly, the 21st century economy is continuously advancing and it is becoming important that help from partner banks, government entities and corporations is taken to ensure that no one is left behind in terms of financial inclusion and growth. literacy.

Over the past decade, the rapid pace at which India has advanced in digital technology has been nothing short of magical. People in India have embraced digital payments like fish out of water, with a large amount of monetary transactions at toll booths, shops, account transfers, restaurants, etc. only through mobile phones.

Many developing countries aspire to emulate India’s success story in digital payments, and these newly launched digital banking units in 75 districts are another chapter in the glorious book of that story. (ANI)

(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)