Finance Minister Nirmala Sitharaman has reiterated her Budget announcement on setting up 75 digital banking units in 75 districts of the country this year. This is to take forward the government’s agenda of digital financial inclusion.
What are the DBUs?
The Reserve Bank of India has announced the guidelines for DBUs, following the report of a working group of the Indian Banks Association. A digital banking unit is a specialised fixed point business unit or hub housing certain minimum digital infrastructure for delivering digital banking products and services as well as servicing existing financial products and services digitally in self-service mode at any time.
Who will set up these DBUs?
Commercial banks (other than regional rural banks, payment banks and local area banks) with past digital banking experience are permitted to open DBUs in tier 1 to tier 6 centres, unless otherwise specifically restricted, without having the need to take permission from the RBI in each case.
What are the services that will be provided by these units?