Digital Bharat Nidhi (DBN) is a government fund and scheme established to bridge the digital divide and enhance telecommunication services across India. Its provisions are contained in Sections 24-26, Chapter V of The Telecommunications Act, 2023, which was passed by Parliament in December 2023. The DBN was created to replace the older Universal Service Obligation Fund (USOF), which was established under the Indian Telegraph (Amendment) Act, 2003. The USOF had faced criticism for the underutilization of its funds. The Department of Telecommunications (DoT) announced the DBN in July 2024, with draft rules released on July 4, 2024, to operationalize the new framework.
The fund is generated by charging a 5% Universal Service Levy on the Adjusted Gross Revenue (AGR) of all telecom operators. These contributions are first credited to the Consolidated Fund of India (CFI), from which the government periodically allocates money to the DBN. The mechanism is designed to financially support the expansion of telecom networks in underserved rural, remote, and urban areas where private companies may not find it revenue-generating.
The DBN's scope is broader than the USOF, focusing not only on universal access but also on funding research and development (R&D) in telecom technologies, supporting pilot projects, and encouraging start-ups. It aims to introduce next-generation telecommunication technologies and provide targeted access to underserved groups, including women and persons with disabilities. The DBN is a key component of the government's strategy to advance the Digital India mission.