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New-age banking hinges on tech

January 30, 2023

New-age banking hinges on tech
With the advent and penetration of banking services like UPI and mobile banking, the banking sector is on the cusp of witnessing massive transformation. The introduction of digital banking units (DBUs) and digital currency by the government are two major initiatives bringing concepts of self-service, financial inclusion and cost-effective banking seamlessly integrated onto regulated platforms.

With DBUs and self-service functionality, many processes will become extremely efficient. This model, particularly in urban areas, will assist customers with much-needed access to easily carry out most of their day-to-day banking operations. This, in turn, helps to reduce the burden on banks while also keeping the economy consistently operational and driving financial inclusion.

DBUs have their own limitations, such as inaccessibility for the unbanked population and technological literacy issues, and we still have a long way to go on our journey to truly connect every Indian to the banking system. However, this is a significant step forward in furthering India’s digital economy agenda.

The digital avatar of paper currency digital rupee will now be considered a regulated and safer mode of payment. Digital banking and digital currency have also given a significant boost to the startup ecosystem, with many fintech players and tech startups thriving in operations such as customer service, automation, and so on.

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