Back to Career News

RBI nod to banks to open digital banking units

April 11, 2022

RBI nod to banks to open digital banking units
The Reserve Bank of India (RBI) on Thursday laid down norms to allow commercial banks to open digital banking units (DBU) while mandating minimum products and services that should be offered in these units. The Union Budget of 2022-23 had announced the setting up of 75 Digital Banking Units (DBUs) in 75 districts to commemorate the 75 years of independence of our nation.

To start with, all scheduled commercial banks with past digital banking experience are allowed to open such units except for regional rural banks, local area, and payments banks, without prior approval of the RBI in tier 1 to tier 6 cities.
 
DBU has been defined as a specialized 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 both self-service and assisted mode.
 
The aim DBU is to enable clients to have cost-effective and convenient access and enhanced digital experience of such products and services in “an efficient, paperless, secured and connected ecosystem with most services being available in self-service mode whenever, all year round.”

The RBI has said each DBU should be housed particularly, with separate entry and exit provisions. “They will be separate from a current banking outlet with formats and designs most appropriate for digital banking clients,” the RBI notification said. 
Important Links:

Recommended for you ...

Indian Tech Startups Raise $1.6 Billion in Q1 2024, Retail and Fintech Lead Growth
Indian Tech Startups Raise $1.6 Billion in Q1 2024, Retail and Fintech Lead Growth

March 28, 2024

Fintech Experts Advocate for Cohesive Regulatory Framework Amid Rapid Digitalisation of Finance
Fintech Experts Advocate for Cohesive Regulatory Framework Amid Rapid Digitalisation of Finance

March 27, 2024

Indian Payment Aggregators Rush to Obtain International Payment Licences
Indian Payment Aggregators Rush to Obtain International Payment Licences

March 27, 2024

Chat on WhatsApp