The growth of fintech and digital payments over the past few years inspired more such digital advancements. With the 75th year of Indian Independence, the budget of 2022-23 announced 75 Digital Banking Units in 75 Indian districts. The main aim of this decision was to encourage digital financial inclusion.
Wondering what is digital banking unit and how is it useful? Here’s all you need to know about digital banking units in India.
The RBI (Reserve Bank of India) defined and set out rules for DBUs (Digital Banking Units).
DBUs are specialised business outlets delivering digital banking facilities and services. These outlets consist of internet services and machines that allow various facilities through digital banking.
As per RBI, these digital banking units aim to provide an enhanced banking experience. Digitalisation makes services paperless, more cost-effective, and quick. Moreover, with priority to security and all-time access, these units are set to increase banking connectivity and inclusivity.
With 75 digital banking units throughout the country, each state in India will have at least one unit. As per the guidelines, there will be four DBUs in Karnataka, Uttar Pradesh, Rajasthan, and Tamil Nadu. States like Maharashtra, Gujarat, Telangana, Kerala, Sikkim, Punjab, and Madhya Pradesh will have three units.
Both private and public banks have collaborated to open these DBUs across the country. SBI has 12 outlets, followed by Bank of Baroda at 8, and 6 by Union Bank of India. Besides, ICICI and HDFC banks are also extending DBUs.
For added convenience, these DBU outlets will operate 24x7 all year long. Alongside banking services, DBUs will also assist in educating the public about safe digital banking practices.
To make digital banking units in India more seamless, each unit offers a certain set of services. These services fulfil basic some specific requirements of that area. Besides, banks providing these DBU services are free to offer products and services as they like.
Most services must be carried out personally. However, private banks like ICICI and HDFC extend staff-assistance zones.
Digital baking units are set to make all the above-mentioned services smooth and systematic. With access to these services at DBUs, you can carry out your banking needs without the hassles of traditional banking.
Digitalisation has been the fuel towards rapid economic evolution. Today, digitalised banking is improving, reaching each nook and corner, aiming to reform banking experiences. Such was the aim behind digital banking units in India.
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Unlike traditional banks, DBUs are wholly digitalised outlets. They provide several services on a 24x7 basis.
DBUs extend all-time services that are quick and efficient. They aim at better connectivity and financial inclusion for all.
Some of the common facilities include checking balances, funds transfers, loan applications, opening savings accounts, FD investments, etc.
DBUs aim at improving direct technical support to all by increasing connectivity. Moreover, it extends enhanced access to all banking services with financial literacy.