Prime Minister Narendra Modi dedicated 75 Digital Banking Units(DBU) via video conferencing on Sunday 16th October. This step has been taken to enhance the financial inclusion in every nook and corner of the country as announced in the Union Budget of 2022-23.
What are Digital Banking Units?
As the name goes, these units are specialized business units for delivering digital banking products and services as well as servicing existing financial products and services digitally in self service mode. Currently only Commercial banks (other than regional rural banks, payment banks and local area banks) with past digital banking experience are permitted to open DBUs in tier 1 to tier 6 centres
In simple terms, you can avail the below services from these DBU’s
- Savings Bank Account (Under various schemes)
- Current Account
- FD, RD Account
- Mobile Banking/Internet Banking
- Debit Card/Credit Card
- Mass Transit System Cards (Ex: For use in Metro Trains)
- Digital kit for merchants, UPI QR code, BHIM Aadhaar and point of sale (PoS).
- MSME or Schematic Loans
- Digital Processing of Loans