RBI releases Guidelines on Establishment of Digital Banking Units (DBUs)

The Reserve Bank of India (RBI) on Thursday issued guidelines for the establishment of ‘Digital Banking Units’ as announced in the Union Budget 2022-23 by Finance Minister Nirmala Sitharaman earlier this year. In the Union Budget 2022-23 the finance minister made announcements for setting up of 75 Digital Banking Units (DBUs) in 75 districts to commemorate the 75 years of independence of the country. To achieve this objective, the Reserve Bank of India has released the guidelines on the establishment of Digital Banking Units (DBUs). 

Digital Banking Unit (DBU): It will be a specialised fixed point business unit / hub housing certain minimum digital infrastructure for delivering digital banking products & services as well as servicing existing financial products & services digitally, in both self-service and assisted mode for a minimum of 4 hours per day for at least five days a week.

Which Banks can open Digital Banking Unit?– Scheduled Commercial Banks (other than RRBs, Payments Bank and Local Area Banks) with past digital banking experience are permitted to open DBUs in Tier 1 to Tier 6 centres.