Skip to main content

Digital Banking Units to further augment digital infra, says RBI governor

By

 Digital Banking Units (DBU), which were inaugurated by Prime Minister Narendra Modi on Sunday, will further augment the country's digital infrastructure, Reserve Bank of India governor Shaktikanta Das said.  “This will act as an enabler in the digital ecosystem and will improve customer experience by facilitating seamless banking transactions,” Das said in his speech. “The DBUs will augment our efforts to promote financial inclusion by providing banking services in a paperless, efficient, safe and secure environment.” The specific financial services to be extended by the DBUs include, savings, credit, investment and insurance. “On the credit delivery front, to start with, the DBUs will provide end-to-end digital processing of small ticket retail and MSME loans, starting from online applications to disbursals,” Das said. DBUs will also provide services related to certain identified government sponsored schemes.

 

The products and services in these Units will be provided in two modes – self-service and assisted modes, with self-service mode being available round the clock, on all days. An announcement was made by finance minister Nirmala Sitharaman during the Union Budget of 2022-23 for setting up of 75 DBUs, following which RBI had issued the required guidelines after consulting the Indian Banks Association and other experts in the field. “It is heartening to note that the commercial banks – both in the public and private sectors – have responded very positively to this initiative. Seventy five DBUs have been set up in a record six months’ time in 75 districts of the country to commemorate 75 years of our independence,” Das said. The setting up of DBUs is a joint initiative of the Centre, RBI, the Indian Banks Association and the participating banks. “The banks are also free to engage the services of digital business facilitators and business correspondents to expand the footprint of the DBUs,” he added. State Bank of India, the country’s largest lender, has opened 12 DBUs out of the 75, which are in places like Port Blair in Andaman & Nicobar Islands, Balod in Chhattisgarh, and East, North and West Sikkim, among others. Bank of Baroda has opened 8 DBUs which are in Varanasi, Kota, Vadodara, among others. HDFC Bank – the country’s largest private sector bank has opened 4 DBUs which are in Haridwar, Chandigarh, Faridabad (Haryana) and South 24 Parganas (WB). ICICI Bank – the second largest private sector bank has also opened four DBUs-- one each in Dehradun, Karur (Tamil Nadu), Kohima and Puducherry.

 

 

-Business Standard, 17th October 2022

 

 

Comments

Post a Comment

Popular posts from this blog

New income tax slab and rates for new tax regime FY 2023-24 (AY 2024-25) announced in Budget 2023

By
  Basic exemption limit has been hiked to Rs.3 lakh from Rs 2.5 currently under the new income tax regime in Budget 2023. Further, the income tax slabs in the new tax regime has been changed. According to the announcement, 5 income tax slabs will be there in FY 2023-24, from 6 income tax slabs currently. A rebate under Section 87A has been enhanced under the new tax regime; from the current income level of Rs.5 lakh to Rs.7 lakh. Thus, individuals opting for the new income tax regime and having an income up to Rs.7 lakh will not pay any taxes   The income tax slabs under the new income tax regime will now be as follows: Rs 0 to Rs 3 lakh - 0% tax rate Rs 3 lakh to 6 lakh - 5% Rs 6 lakh to 9 lakh - 10% Rs 9 lakh to Rs 12 lakh - 15% Rs 12 lakh to Rs 15 lakh - 20% Above Rs 15 lakh - 30%   The revised Income tax slabs under new tax regime for FY 2023-24 (AY 2024-25)   Income tax slabs under new tax regime Income tax rates under new tax regime O to Rs 3 lakh 0 Rs 3 lakh to Rs 6 lakh 5% Rs 6
Post a Comment
Read more

Jaitley plans to cut MSME tax rate to 25%

By
Income tax for companies with annual turnover up to ?50 crore has been reduced to 25% from 30% in order to make Micro, Small and Medium Enterprises (MSME) companies more viable and also to encourage firms to migrate to a company format. This move will benefit 96% or 6.67 lakh of the 6.94 lakh companies filing returns of lower taxation and make MSME sector more competitive as compared with large companies. However, bigger firms have shown their disappointment since the proposal for reducing tax rates was to make Indian firms competitive globally and it is the large firms that are competing globally. The Finance Minister foregone revenue estimate of Rs 7,200 crore per annum for this for this measure. Besides, the Finance Minister refrained from removing or reducing Minimum Alternate Tax (MAT), a popular demand from India Inc., but provided a higher period of 15 years for carry forward of future credit claims, instead of the existing 10-year period. “It is not practical to rem
1 comment
Read more

Don't forget to verify your income tax return in August: Here's the process

By
  An ITR return needs to be verified within 120 days of filing of tax return. Now that you have filed your income tax return, remember to verify it because your return filing process is not complete unless you do so. The CBDT has reduced the time limit of ITR verification to 30 days (from 120 days) from the date of return submission. The new rule is applicable for the returns filed online on or after 1st August 2022. E-verification is the most convenient and instant method for verifying your ITR. However, if you prefer not to e-verify, you have the option to verify it by sending a physical copy of the ITR-V. Taxpayers who filed returns by July 31, 2023 but forget to verify their tax returns, will get the following email from the tax department, as per ClearTax. If your ITR is not verified within 30 days of e-filing, it will be considered invalid, and may be liable to pay a Late Fee. Aadhaar OTP | EVC through bank account | EVC through Demat account | Sending duly signed ITR-V through s
Post a Comment
Read more