The Reserve Bank of India announced that current banks can open digital banking units to provide products and services 24 hours a day, 7 days a week, in both self-serve and assisted modes. The government announced in the Union Budget that at least 75 such units will be established in 75 districts to commemorate the country’s 75th anniversary of independence as the Azadi ka Amrit Mahotsav.
- The products and services to be supplied at a DBU, according to the requirements for the formation of Digital Banking Units (DBUs), include account opening, cash withdrawal and deposit, KYC updation, loans, and complaint registrations.
- Scheduled commercial banks with digital banking experience are allowed to open DBUs in Tier 1 to Tier 6 centres without obtaining RBI clearance, according to the guidelines.
- Each DBU must be housed separately, with its own entry and exit points. According to the recommendations, these units would be different from conventional banking outlets and will have forms and designs that are most ideal for digital banking consumers.
What is DBU?
‘DBU’ stands for Digital Banking Unit, which is a specialised fixed point business unit/hub that houses specific basic infrastructure for delivering digital banking goods and services to consumers in a simple and cost-effective manner.