Relevance:
Recently, the Prime Minister of India has dedicated 75 Digital Banking Units (DBU) across 75 districts to the nation as announced in Union budget 2022-23.
About DBUs:
- A banking outlet with digital infrastructure for delivering banking products and services in self-service as well as assisted modes at any time.
- A joint initiative – Government, RBI, Indian Banks Association and participating banks.
- 2 distinct features:
- Self-service Zone – Customers can access ATM, Cash Deposit Machine, accessing internet banking, etc.
- Digital Assistance Zone – Assists customers to undertake the services including opening of savings account, current account, etc.
Benefits of DBUs:
- 24×7 banking services including cash deposit & withdrawal.
- People not having connectivity or computing devices can do banking transactions in a paperless mode.
- Digital financial literacy and create awareness for adopting digital banking.
- Augment digital infrastructure.
| Digital Banking Units | Digital Banks |
| Do not have legal personality. Equivalent to banking outlets (branches) | Will have a balance sheet and legal personality |
| Not licensed under Banking Regulation Act, 1949. | Duly licensed banks under Banking Regulation Act, 1949. |
Reference: PIB
