Budget 2022: 75 digital banking units to be set up in 75 districts

To give a boost to the digital economy and mark 75 years of India's independence, Union finance minister Nirmala Sitharaman announced on Tuesday that the govt has proposed to set up 75 Digital Banking Units (DBUs) in 75 districts of the country by Scheduled Commercial Banks.

Presenting the Union budget, Sitharaman also announced the introduction of Digital Rupee, which will be issued by the Reserve Bank of India starting 2022-23.

"Digital currency will also lead to a more efficient and cheaper currency management system. It is therefore proposed to introduce digital rupee using blockchain and other technologies to be issued by the Reserve Bank of India, starting 2022-23," Sitharaman said.

She also said ₹1 lakh crore financial assistance to states will be provided in 2022-23 to catalyse investments.

The finance minister further said that in 2022-23, states will be allowed a fiscal deficit of up to 4 pc of GSDP (Gross State Domestic Product).

The minister also proposed to set up an expert committee to examine and suggest appropriate measures to scale up venture capital and private equity investment.

As per a release by the Union finance ministry, Sitharaman said that in recent years, digital banking, digital payments and fintech innovations have grown at a rapid pace in the country. 

The minister said that the government has been trying to ensure that the benefits of digital banking reach every nook and corner of the country in a consumer-friendly manner.

Further, Sitharaman announced that in 2022, 100% of 1.5 lakh post offices will come on the core banking system enabling financial inclusion and access to accounts through net banking, mobile banking, ATMs, and will also provide online transfer of funds between post office accounts and bank accounts.

"This will be helpful, especially for farmers and senior citizens in rural areas, enabling interoperability and financial inclusion," she said.