What are Digital banking units?

75 digital banking units were inaugurated by Prime Minister Modi on October 16, 2022.

Key facts

  • In the Union Budget 2022-23, the Indian Government announced the setting up of 75 Digital Banking Units (DBUs) in 75 districts across India by the Scheduled Commercial Banks.
  • The launch commemorates the 75th anniversary of Indian independence.
  • A digital Banking Unit (DBU) is a specialized brick-and-mortar business unit/hub that is equipped with basic infrastructures like tablets and internet services for providing digital banking products and services.
  • It also provides digital services related to existing financial products and services in self-service mode at any time.
  • Services provided by these units include opening savings accounts under various schemes, balance-check, fund transfers, investment in fixed deposits, loan applications, digital kits for customers, stop-payment instructions for cheques issued, applications for credit and debit cards, tax and bill payments and nominations, mass transit systems cards, UPI QR codes, etc.
  • The DBUs will make banking products and services cost-effective and easily accessible for customers throughout the year.
  • They will make India financially inclusive by providing digital banking services in all states and union territories.
  • These units will promote digital financial literacy, with a special focus given to customer education on cyber security awareness and safeguards.
  • Real-time assistance and customer grievances arising from products and services provided by the DBUs will be addressed directly or via business facilities and correspondents. 
  • The guidelines for setting up DBUs were announced by the Reserve Bank of India in April 2022.
  • Commercial banks having past experience in providing digital banking services are allowed to open DBUs in Tier 1 to 6 centers. They do not require RBI’s permission to set up these units.
  • Regional rural banks, payment banks, and local area banks cannot set up DBUs.
  • The DBU must provide certain minimum digital banking products and services.
  • These products and services must be on both liabilities and assets side of the digital banking segment’s balance sheet.



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