PM dedicates 75 Digital Banking Units across 75 districts to the nation

Source: The post is based on the article “PM dedicates 75 Digital Banking Units across 75 districts to the nation” published in PIB on 16th October 2022.

What is the News?

The Prime Minister has dedicated 75 Digital Banking Units(DBU) across 75 districts to the nation.

Note: As part of the Union budget speech for 2022-23, the Finance Minister announced setting up the 75 DBUs in 75 districts to commemorate our country’s 75 years of independence. 

What are Digital Banking Units(DBU)?

A digital banking unit is a specialized fixed point business unit or hub, housing a certain minimum digital infrastructure for delivering digital banking products and services as well as servicing existing financial products and services digitally in self-service mode at any time.

The DBUs are being set up with the objective to ensure the benefits of digital banking reach every nook and corner of the country and will cover all the States and Union territories. 

Who will set up these DBUs?

Commercial banks (other than regional rural banks, payment banks and local area banks) with past digital banking experience are permitted to open DBUs in tier 1 to tier 6 centers unless otherwise specifically restricted without having the need to take permission from the RBI in each case.

Currently, ​​11 Public Sector Banks, 12 Private Sector Banks and one Small Finance Bank are participating in this endeavour.

What are the services DBUs will provide?

DBUs will be brick-and-mortar outlets which will provide a variety of digital banking facilities to people such as opening savings accounts, transfer of funds, investment in fixed deposits, loan applications, stop-payment instructions for cheques issued, applying for credit/debit cards, view statement of account, pay taxes, pay bills among others.

They will also spread Digital Financial Literacy and special emphasis will be given to customer education on cyber security awareness and safeguards.