What are digital banking units?

What are DBUs?

According to the Reserve Bank of India (RBI), a DBU is “a specialized fixed-point business unit/hub housing certain minimum digital infrastructure to deliver digital banking products and services as well as digitally service existing financial products and services, at both in self-service and assisted mode.”

DBUs will provide several digital banking services to account holders.

According to RBI, DBUs “will enable customers to have cost-effective access to and enhanced digital experience of these products and services in an efficient, paperless, secure and connected environment, with most services available on a self-service basis at any time, all year round.”

During the inauguration of 75 DBUs on October 16, Prime Minister Modi said that DBUs simplify the banking procedure while providing a robust and secure banking system. Everything from sending money to taking out loans will become easier.

According to the RBI, the purpose of DBUs is to optimally combine digital infrastructure with the “human touch”. Banks must plan and set up remote or on-site assisted mode systems in the right proportion.

Indian states and DBUs

Karnataka, Tamil Nadu, Uttar Pradesh, Odisha and Rajasthan will each receive four DBUs. They will be followed by Gujarat, Kerala, Madhya Pradesh, Maharashtra, Punjab, Sikkim and Telangana, with three DBUs each.

PSUs and DBUs

At 12, the State Bank of India (SBI) opened the highest number of DBUs. Bank of Baroda follows with eight DBUs, and Union Bank of India opened six units.

In addition to public sector banks, two private lenders, ICICI Bank and HDFC Bank, have also announced the establishment of DBUs.

Along with banking services, DBUs will also provide customers with hands-on training on safe digital banking products and practices.

DBUs will also offer grievance services to customers. Computers and the Internet have ushered in a new era of banking in India and across the world. The DBUs promise to go even further.

Michael J. Birnbaum