The Government of India plans to nearly double the number of Digital Banking Units (DBUs) to 200 by the end of FY26.
Currently, over 100 DBUs operate in rural and semi-urban areas, providing digital banking services akin to Automated Teller Machines (ATMs). The initiative is expected to accelerate digital financial adoption, particularly in regions with limited banking infrastructure.
This expansion aims to strengthen financial inclusion by enabling DBUs to offer a broader range of financial products, including insurance and pension schemes.
The government is also encouraging private-sector banks to set up DBUs in semi-urban areas to further bolster India’s digital financial ecosystem.
DBUs will integrate with key government financial inclusion programs such as the Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), and Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi). They will also facilitate the digital issuance of Kisan Credit Cards (KCC) and streamline direct benefit transfers.
