Prime Minister Narendra Modi launched 75 digital banking units (DBUs) across 75 districts via video conference on 16th October. The planning for this project was announced by the Union Finance Minister Nirmala Sitharaman during the 2022-23 Union Budget to mark 75 years of our independence.
Addressing the nation in a virtual mode, Modi said that the digital banking units (DBUs) will provide better financial inclusion and improve banking experience for the citizens.
The Government is setting the DBUs with the aim that all people can take the benefits of digital banking at every nook and corner of the country across all the states and union territories in a consumer-friendly manner.
What are DBUs?
The digital banking unit (DBU) is a special all-in-one unit with minimum digital infrastructure for delivering numerous digital banking services such as opening a savings account, balance check, passbook printing, fund transfer, loan applications, investment in fixed deposits, stop-payment instructions for cheques issued, applications for credit and debit cards, tax and bill payment and a nomination for guide, the PMO stated.
The PMO also stated that the DBU gives customers cost-effective, convenient access and enhanced digital experience of banking services and products throughout the year.
Both ICICI and HDFC Banks have announced to establishment DBUs.
DBU will provide 2 distinct features to its customers- Self-service Zone and a Digital Assistance Zone.
At Self-service Zone, the customers can use ATM, a Cash Deposit Machine (CDM), and a Multi-Functional Kiosk (MFK) that provides facilities for passbook printing, depositing cheques, and accessing internet banking.
Customers will also get a facility of a digital interactive screen where they can interact with a chatbot to know about products, offers, and mandatory notices.
On the other hand, the Digital Assistance Zone will possess branch officials to help customers easily access services, including opening savings accounts, current accounts, fixed deposits, and recurring deposits. All these services can be accessed digitally through a tablet device using Aadhaar-based eKYC.
DBU will also provide services like digital kits for customers, mobile banking, internet banking, Debit Card, Credit card and mass transit system cards, and Digital Kit for Merchants: UPI QR code, BHIM Aadhaar, Point of Sale (PoS), MSME or schematic loans, End-to-end digital processing of such loans, starting from online application to disbursal, Identified Government sponsored schemes which are covered under the National Portal, Cash withdrawal and Cash Deposit through ATM or Cash Deposit Machines, Updation of KYC / other personal details, Atal Pension Yojana (APY), 15 Insurance onboarding for Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY).