The Reserve Bank of India (RBI) published instructions on Thursday for the construction of ‘Digital Banking Units,’ as stated by Finance Minister Nirmala Sitharaman in the Union Budget 2022-23 earlier this year.
To mark the country’s 75 years of independence, the finance minister announced the establishment of 75 Digital Banking Units (DBUs) in 75 districts in the Union Budget 2022-23. The Reserve Bank established a ‘Committee for the Formation of Digital Banking Units (DBUs)’ in response to the budget announcement to define a path for the establishment of DBUs.
Following necessary consultations and deliberations, the Committee issued recommendations on various aspects of DBUs, including the digital banking unit model, facilities to be offered in DBUs, monitoring of DBU operations, cyber security and other IT-related issues, and the role of DBU in the spread of digital banking awareness, among others.
“Based on the recommendations of the Committee, the guidelines on ‘Establishment of Digital Banking Units’ have been finalised,” RBI said in a statement.
The Digital Banking Unit is a specialised fixed point business unit/hub that houses 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, to enable customers to have cost-effective/ convenient access and enhanced digital experience to/ of such products and services in an efficient, paperless, secured, and connected environment with mos.
The RBI has issued rules that state that banks’ Digital Banking Units would be recognised as banking outlets.