What are Digital Banking Units (DBUs)?

While digital banking has revolutionized the Indian banking industry, not everyone has a smartphone, computer, or laptop to access online services. Prime Minister Narendra Modi recently launched 75 Digital Banking Units, or DBUs, in 75 districts across the country to eliminate this inconvenience. Let’s take a look at what are Digital Banking Units, how they work, their benefits, and more -

What are Digital Banking Units?

Digital Banking Units (DBUs) are fixed point business hubs housing minimum digital infrastructure to provide digital banking solutions. DBUs will provide services in paperless manner. The units cater to new and existing customers in assisted (available during banking hours) and self-service (available 24x7) modes.

Why are Digital Banking Units Being Introduced?

The primary reason for the government to introduce DBUs is to make the digital banking infrastructure more accessible. They also aid financial inclusion and provide people with access to an extensive range of banking services and products in a convenient and secure manner.

How Do DBUs Operate?

The 75 DBUs launched in October 2022 are part of a pilot project. Based on user experience, the government intends to expand the program further in the coming years. Currently, all 29 states and 8 union territories of the country have at least one of these online banking units.

Except for regional rural banks, local area banks, and payment banks, all the scheduled commercial banks with digital banking experience can take the required RBI approvals to set up their DBUs.

What Transactions Can Be Performed at DBUs?

According to the RBI guidelines, every DBU should have a certain digital infrastructure to offer basic banking services and products. For instance, they should allow new customers to open a new Savings Account, invest in Fixed Deposits, apply for Retail Loans, etc.

Existing account holders can visit the nearest DBU to withdraw/deposit funds, transfer funds, check account balances, print passbooks, stop cheque payments, and more.

How Do DBUs Help Customers?

Many people living in the rural parts of the country don’t have easy access to financial services and products. DBUs expand the reach of digital banking in the country to ensure people, even from rural areas, can benefit from online banking facilities. Even people with no smartphone or computer can access digital banking services and products by visiting the nearest DBU.

Products and Services Available at DBUs

With the Digital Banking Unit system, people can access various asset and liability-based services and products along with various digital services. Take a look-

Asset Services and Products

• Applying for MSME, retail, or schematic loans, including assistance throughout the loan application and disbursal process

• Access various government-sponsored programs and schemes

Liability Services and Products

• Account opening, including Savings Account, Current Account, Fixed Deposits, and Recurring Deposits

• Offer digital kits to customers for Internet Banking, Mobile Banking, Credit Cards, Debit Cards, etc.

• Offer digital kits to merchants for BHIM Aadhaar, POS, UPI QR Code, etc.

Digital Services

• Cash deposits and withdrawals through ATMs

• Statement generation/passbook printing

• Online Banking kiosk

• Account Opening kiosk

• Video/e-KYC kiosk

• Fund transfer through IMPS/NEFT

Digital Banking in India

Digital Banking is one of the most effective ways to empower the masses and provide them seamless access to banking services and products. The Digital Banking Units (DBUs) are an excellent endeavour by the government to achieve this objective.

If you’d like to experience the convenience and security of Online Banking, AU Small Finance Bank can help. With Digital Banking channels like AU 0101 App/NetBanking, AU Video Banking, and WhatsApp Banking, our products and services will upgrade your banking experience and help you take maximum advantage of the latest banking technologies.

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https://www.thehindubusinessline.com/blexplainer/digital-banking-units-next-big-step-in-indias-digital-banking-march/article66021287.ece