RBI bets on DBUs to strengthen digital infrastructure, online banking

RBI bets on DBUs to strengthen digital infrastructure, online banking

The Reserve Bank of India (RBI) has reportedly announced the establishment of digital banking units (DBUs) across the country.

According to RBI Governor Shaktikanta Das, this move will help boost India’s digital infrastructure and banking transactions to ensure an improved customer experience.

It is imperative to note that, Prime Minister Narendra Modi has dedicated 75 DBUs across several districts of India in honor of the country’s 75th year of independence.

As a part of this endeavor, which is a joint effort co-led by the RBI, the Indian government, the Indian Banks Association, and member banks, commercial banks are setting up DBUs across untouched corners of the nation to facilitate access to digital banking services and associated benefits.

According to credible sources, HDFC Bank has opened four units altogether, each established in Chandigarh, Haridwar, South 24 Parganas (West Bengal), and Faridabad. Similarly, Axis Bank has set up units across Bundi, Bhilwara, and Itarsi, thereby tapping into Rajasthan, and Madhya Pradesh.

Meanwhile, private banking firm ICICI Bank has unveiled four DBUs in Karur (Tamil Nadu), Dehradun (Uttarakhand), and Kohima (Nagaland), along with Puducherry.

As per Das, these consolidated efforts will promote financial inclusion by providing banking services in an efficient, safe, and paperless environment.

Das shed further light on the DBUs, explaining that the products and services offered would be available in two modes - the self-service mode offering 24/7 assistance, and assisted mode.

As per reports, the following are the potential advantages of DBUs:

  • DBUs will offer a suite of specific financial services including credit, insurance, savings, and investment.
  • End-to-end digital processing of MSME loans and small ticket retail will support a broad spectrum of online applications and disbursals.
  • DBUs will ensure enhanced digital experience and convenient access to affordable banking products and services.
  • DBUs will drive digital financial literacy by focusing on raising customer awareness regarding cyber security and safeguards.

Source credit: https://indianexpress.com/article/business/economy/dbus-to-further-augment-digital-infrastructure-says-rbi-governor-8212760/