India is working intensively towards widening the pathways to financial inclusion, especially in the small towns and villages across the country. The term financial inclusion refers to the efforts to make financial products and services accessible and affordable to all individuals and businesses, regardless of their personal net worth or company size.
In its recent move, the Indian government launched 75 digital banking units in villages and small towns to enhance financial inclusion which remains low in rural areas. Set up in collaboration with 20 public and private sector banks, the move promises to bring financial services and literacy to more citizens.
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It will help individuals and small businesses, especially in small town and village areas to open their savings accounts, access government-identified schemes, perform verifications, make transactions, avail loans and insurance.
The self-service operations will be available for all 365 days and 24*7. Equipped with internet and tablet facilities, these digital centres will also offer a digital assistance zone to address queries and complaints from individuals and small businesses.
Traditionally, banking services have been a struggle for people, especially in villages and small towns. People in these areas typically required a day off from work to visit a bank and get the work done. But these digital banking units will help them get rid of this problem.
The digital banking units are part of the Indian government’s years-long efforts to serve people in far-flung areas. In 2014, the government also launched Jan Dhan Yojana, a scheme to get all citizens access to banking and financial service. It also provides loans to the poor without collateral and Direct Benefit Transfer to the accounts of the target beneficiaries.
And now this initiative of opening digital banks across rural areas is not only a big step to empower people in these areas but also provides them with greater ease of living while connecting them to the mainstream.