Digital Banking Units (DBUs)
Recently the Prime Minister has dedicated 75 Digital Banking Units (DBUs) to the nation.
These DBUs will be set up in 75 districts of the country. It was announced in the Union Budget 2022-23.
A DBU is a banking outlet with digital infrastructure. Here one can get banking products and services at any time.
The services will be available in the following modes: In self-service mode and in aid delivery mode.
DBUs will have 2 main features:
- Self Service Area: Customer can use ATM, Cash Deposit Machine, Internet Banking etc.
- Digital Assistance Sector: It will help the customers to launch many services like opening savings account, opening current account etc.
Earlier, RBI had issued guidelines on DBUs.
Following are some of the provisions of the guidelines on DBUs:
- Commercial banks having experience in digital banking are allowed to open DBUs. However, this is not allowed for Regional Rural Banks, Payment Banks and Local Area Banks.
- The DBU will be treated as a banking outlet. Every DBU has to provide certain minimum digital banking products and services.
Advantages of DBU-
- 24×7 banking services will be available. These services also include cash deposits and withdrawals.
- Those who do not have connectivity or computing devices can do banking transactions in paperless mode.
- It will promote digital financial literacy. In addition, it will also create awareness for the adoption of digital banking.
Source – The Hindu