Digital Bharat Nidhi would replace the erstwhile Universal Service Obligation Fund (USOF).
The Department of Telecommunication released a draft for replacing the Universal Service Obligation Fund (USOF) with Digital Bharat Nidhi.
Digital Bharat Nidhi was established under the Telecommunications Act, 2023.
It was established to provide telecom services in remote and rural areas at affordable prices through a universal access levy.
Payments received for DBN will first be credited to the Consolidated Fund of India under Section 25 of the Telecommunications Act, 2023.
The amount will then be credited to the DBN by the central government to provide access to telecommunication services in rural, remote and urban areas.
Sections 24 to 26 of the act will replace renamed USOF as DBN.
This fund will also support pilot projects, consultancy assistance and research and development.
Under the proposed rules, the central government will appoint an “administrator” of the DBN. It will select the DBN implementers through bidding or invitation of applications.