Govt to expand DBU mandate

In a major digitalization drive, the government plans to expand the mandate of digital banking units (DBUs) to provide a larger bouquet of financial products, including insurance policies and other financial inclusion products and schemes.

According to two persons privy to the development, the new expanded mandate for DBUs may be launched in the first set of 75 DBUs that are being set up across the country, including in semi-urban and rural areas.It would then be taken in every new DBU that is set up thereafter.

“The idea is to extend basic digital services for delivering a host of financial products through the infrastructure set up under DBUs. This will help DBUs to turn into major vehicles of financial inclusion bringing banking and financial services to the doorsteps of people in unbanked or areas with limited financial services,” said one of the persons quoted above.

DBU is a specialized fixed point business unit housing minimum digital infrastructure for delivering digital banking products and services as well as servicing existing financial products and services digitally, in both self-service and assisted mode.

It enables customers to have cost- effective and convenient access and enhanced digital experience of such products and services in an efficient, paperless, secured and connected environment with most services being available in self-service mode at any time, all year round.