What is The Digital Bharat Nidhi (DBN)?

Komal Bajpai

Author

Updated: 16-04-2025 at 12:33 PM

The Department of Telecommunications launched ‘Digital Bharat Nidhi’ or DBN in July 2024 to remodel Rural India's telecom connectivity. From the prior USOF (Universal Service Obligation Fund), DBN aims to enlarge the digital gap, encourage the development of new technology, and contribute to the economy's growth in regions with low supply/demand for such services.

In this article, you will get details about Digital Bharat Nidhi, the mechanism of Digital Bharat Nidhi, Challenges And Criticisms Of The USO, Impacts And Benefits and much more.

Overview

The below-mentioned table showcases the key highlights of the Digital Bharat Nidhi (DBN):

Feature	Details
Launch Year	2024
Replacing	Universal Service Obligation Fund (USOF)
Funding Source	5% Universal Service Levy on Adjusted Gross Revenue of telecom companies
Key Activities	Improving connectivity, promoting innovation, and supporting R&D
Administrator Role	Oversees project funding and implementation through open bidding
Primary Goal	To ensure inclusive, affordable, and advanced telecom services for all

What Is Digital Bharat Nidhi?

Digital Bharat Nidhi (DBN) is a scheme of the government of India which is framed in the telecom sector to enhance the telecom facilities, especially in rural and other barren areas of India which are fully covered by service provider companies of India. It follows discussions made by telecom operators and concentrates on the advanced usage of information enterprise, new generation information and communications technology solutions as well as information infrastructure.

Background And Purpose

The below-mentioned table showcases the background and purpose of the Digital Bharat Nidhi:

Background	Purpose
Origin of USOF	Formed in 2003, to support rural telecom accessibility by providing an obligatory 5% Telecom Revenues.
Challenges with USOF	Only 72% of funds collected between 2017–2022 were utilised, leading to project delays.
DBN Objectives	Replace USOF with an efficient framework to ensure equitable access, promote technological growth, and boost economic development in underserved areas.

Challenges And Criticisms Of The USOF

The Universal Service Obligation Fund (USOF) faced criticism for underutilising collected funds, with only 72% spent between 2017–2022. This led to delays in key projects like BharatNet, highlighting issues in implementation and monitoring. To understand it in detail read the following points:-

Underutilisation of Funds

Not all the collected amount was used efficiently (₹2,926 crores was spent out of ₹7,962 crores in the FY 2019-20).

Delays in Projects

Some of the projects like BharatNet and other similar projects failed in their goals because of logistical problems and lack of notification.

Revised Expenditure Plans

It compelled organisations to decrease their planned budgets impressively because of the poor usage or allocation of resources.

Mechanism Of Digital Bharat Nidhi

DBN gets its funding from a Universal Service Levy, which is a small amount taken from telecom operators' earnings. This money is managed through the Consolidated Fund of India. A special administrator is in charge of using these funds properly and ensuring projects are completed through a fair bidding process. Read the points below for more details.

Funding Source

Five per cent of their Adjusted Gross Revenue from telecom operators.

Allocation Process

Amounts placed in the Consolidated Fund of India and then granted to DBN for works.

Implementation Oversight

Responsibility for project choice and financing mechanisms is taken by an appointed administrator to avoid corrupt practices and complications.

Scope And Activities

The objectives of the Digital Bharat Nidhi (DBN) include increasing telecommunication network availability, particularly to unserved areas of the country, encouraging innovation as well as research and development. It also targets the embracement of schemes to support the marginalised in promoting digital inclusion. The following points showcase the major scope and activities:-

Expanding Internet Access: DBN’s mission is to deliver broadband services to rural, remote, and unserved urban populace.
Encouraging Innovation: It targets help for start-ups and new emerging telecom technologies in India.
Funding R&D: Like most banks, DBN funds expansion-focused sectors such as new telecom products, pilots and consultancy.
Targeted Schemes for Inclusion: It avails the chances for women and socially and economically underprivileged classes to come into the electronic realm.

Targeted Outcomes Of DBN

DBN aims to improve connectivity, promote next-gen technologies like 5G, and make telecom services affordable. It also focuses on fostering innovation and contributing to global telecom standards. To understand it in detail read the following points:-

Enhanced Connectivity: Expanding the availability of telecom services to rural and unserved areas.
Next-Gen Technologies: Speaking about supporting the idea of 5G as well as other related technologies in distant regions.
Affordable Services: Taking telecom services closer to economically weaker sections of society.
Innovation Boost: Promoting R&D and start-ups in the case of telecom industry improvement.
Global Standards: Contributing to the international telecom standardisation.

Impacts And Benefits

DBN will boost digital inclusion, drive economic growth, and improve access to e-governance, education, and healthcare. It encourages technological advancements, creating a globally competitive telecom ecosystem. To understand it in detail read the following points:-

Digital Inclusion: Forcing Internet connection on citizens.
Economic Growth: Helping businesses and creating employment for the people in the rural areas.
Improved Services: Accessible for e-governance, educational process, and healthcare services purposes.
Technological Innovation: Promoting new telecommunication initiatives and innovation in ownership rights.
Global Competitiveness: Coming out stronger in the international telecom market in India.

Conclusion

DBN marks a leap in effort to shorten the digital divide in India. As a supplement to the services provided by schemes like the Universal Service Obligation Fund (USOF), it seeks to provide equal input to rural areas, foster an environment for innovative endeavours and make Indian society more digitally connected.

For any queries or to share your opinions, visit the community page of Jaagruk Bharat. Stay connected with India’s biggest Jaagruk society, share your thoughts and more with us.