Norms To Be Followed By Banks To Set Up 24X7 Digital Banking Units
The financial landscape in India has witnessed a major shift in banking behaviour due to the advent of digital banking. To expand the digital infrastructure across the nation, the Finance Minister of India while presenting the Union Budget 2022-23 announced the rollout of nearly 75 Digital Banking Units (DBUs) in 75 districts to commemorate 75 years of Indian independence. Pertaining to this, the Reserve Bank of India (RBI) recently issued guidelines for setting up DBUs that will be accessible round the clock.
What is a Digital Banking Unit?
A Digital Banking Unit (DBU) is a self-service & assisted mode banking hub wherein people can instantly carry out certain banking tasks in an efficient, paperless and convenient manner all year round. This will provide both new and existing customers enhanced digital banking experience. Products and services to be provided at a DBU include, opening of accounts, cash withdrawal and deposit, updating KYC details, loans, and complaint registrations. For carrying out such tasks, customers need not visit the bank physically.
Let’s get to know RBI Guidelines on Digital Banking Units:
Opening of DBUs:
All Scheduled Commercial Banks are permitted to open DBUs in Tier 1 to Tier 6 centres, without the need to seek permission from RBI.
The DBUs of the banks will be treated as Banking Outlets.
Infrastructure and Resources at DBUs
Each DBU will have a separate entry and exit point. They need to be housed at a distinct place separate from the banking outlet with designs & formats most appropriate for the digital banking users.
For the front-end, each bank should equip the DBU with suitable smart equipment, such as Service Terminals, Interactive Bankers, Interactive Teller Machines, Self-Service Card Issuance Machines, Interactive Digital Walls, Video KYC Apparatus, Document Uploading, Video Call / Conferencing Facilities.
Banks can choose an insourced or outsourced (complying with relevant regulatory guidelines) model for operations of digital banking segments, including DBUs.
The operation & structure of the DBUs should align with the Digital Banking Segment of the bank.
If a bank chooses an API Layer from a Third-Party, then the bank should test the system in an isolated environment prior to integrating the same into the core system. This should be done with appropriate risk evaluation & documentation.
Along with ensuring physical security at Digital Banking Units, banks should take cybersecurity measures to ensure complete security.
For onboarding customers to the fully digital experience, banks can use various tools and methods to educate customers on the safe use of digital banking services.
The DBU should be equipped with an adequate digital mechanism to address customer issues in real-time arising from business services offered by the banks.