Digital Banking Units

BANKING AND ECONOMY

● The Reserve Bank of India (RBI) allowed the scheduled commercial banks (other than RRBs, payment banks and LABs) to open digital banking units (DBU) based on their past digital banking experience.
● DBU can be opened in tier-1 to tier-6 cities, without prior approval of the RBI.
● Setting up of DBU enables the customers to have cost-effective and convenient access and enhanced digital experience of the products and services of the bank.
● Each DBU must offer certain minimum digital banking products and services, which should be on both liabilities and assets side of the balance sheet.
● To commemorate the 75 years of independence of our country, 75 DBUs will be established in 75 districts, as per the Union Budget of 2022-23.
 

Facts to know:


● DBU 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, all year round.

Nirmala Sitharaman
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