Shift from ‘phone banking’ to ‘digital banking’ put India on sustained growth path, says PM Modi

Union Finance Minister Nirmala Sitharaman and RBI Governor Shaktikanta Das also attended the launching ceremony via virtual mode.

Prime Minister Narendra Modi on October 16, 2022 attributed India's sustained economic growth to the efforts of the BJP government to replace pre-2014 'phone banking' with 'digital banking'.

Referring to the previous UPA regime, he said under 'phone banking', instructions were given on phone to banks regarding whom they had to lend to and at what terms and conditions.

The economic progress of a country is directly linked to the strength of its banking system, he said after dedicating 75 Digital Banking Units (DBUs) to the nation.

The banking sector has become a medium for good governance and better service delivery, the Prime Minister said, adding Direct Benefit Transfer (DBT) has helped plug leakages and brought in transparency.

The government has so far transferred ₹25 lakh crore through DBT and another installment under the PM-KISAN scheme will be transferred on Monday, he said.

Under the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme, a financial benefit of ₹6,000 per year is provided to the eligible farmer families, payable in three equal installments of ₹2,000.

With regard to DBUs, he said these will further financial inclusion and enhance banking experience for citizens.