Statement 1 is correct: It is the digitization (or moving online) of all the traditional banking activities and programs services that were historically only available to customers when physically inside of a bank branch. This includes activities like Money Deposits, Withdrawals, and Transfers, Checking/Saving Account Management, Applying for Financial Products, Loan Management, Bill Pay, Account Services.

Statement 2 is correct: That’s because the Reserve Bank of India (RBI) does not allow banks to be 100% digital yet (though some foreign banks offer digital-only products through their local units.) The RBI remains unwavering in prioritizing banks’ physical presence and has spoken about the need for digital banking service providers to have some physical presence as well.