Context: The Union Government has proposed to set up 75 Digital Banking Units (DBUs) in 75 districts across the country in 2022.
A digital banking unit is a specialised 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 self-service mode at any time.
Commercial banks (other than regional rural banks, payment banks and local area banks) are allowed 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.
As per the RBI, each DBU must offer certain minimum digital banking products and services.
Such products should be on both liabilities and assets side of the balance sheet of the digital banking segment in which Digitally value-added services to conventional products also form a part.
The services include:
Savings bank accounts under various schemes
Fixed deposits and recurring deposit accounts
Digital kit for customers
Mobile and internet banking
Debit and credit cards
Mass transit system cards
digital kit for merchants - UPI QR code, BHIM Aadhaar and point of sale (PoS).
Other services include making applications for and onboarding of customers for identified retail, MSME or schematic loans, end-to-end digital processing of such loans etc.