Addressing the gathering, the Prime Minister started by stressing that the 75 Digital Banking Units (DBU) will further financial inclusion and enhance banking experience for citizens. “DBU is a big step in the direction of Ease of Living for the common citizens”, he said. The Prime Minister informed that in such a banking setup, the government aims to provide maximum services with minimum infrastructure, and all of this will happen digitally without involving any paperwork. It will also simplify the banking procedure while also providing a robust and secure banking system. “People livin
In concluding his address, the Prime Minister urged the small business owners from villages to completely move towards digital transactions. He also urged banks to connect 100 merchants with them for going totally digital for the benefit of the country. “I am sure, this initiative will take our banking system and economy to a stage which will be future-ready, and will have the capability to lead the global economy”, Shri Modi concluded.
Sitharaman said, “As Reserve Bank Governor also explained, paperless operations will be available 24×7. Even cash deposit facilities or opening of a deposit of fixed deposit or recurring deposits, one can avail of all these services. Government’s credit link schemes through the Jan Samarth portal will also be available for ordinary users, MSME and retail loan users can benefit out of it.”
As was explained, the Union Finance Minister said, financial literacy can be promoted through these DBU units. Financial inclusion and digital banking go another mile in achieving greater digitising and formalising of Indian economy. “I urge all the representatives who are present here today to spend at least some time each day to promote literacy, financial literacy, digital education for the bank customers and for all those business units which are small in your neighbourhood, Smt. Sitharaman said.
The Finance Minister said, “Popularising digital banking is important, so the most important aspect is that it is going to be cost effective for the consumer and it is going to be absolutely safe and secure for them to use it. These thoughts will have to be promoted by the bank agents, meaning banking agents, banking correspondent bank managers and all officials so that greater formalisation of the Indian economy can be achieved.”
Congratulating the RBI and the Indian Bank Association for very speedy documenting this in a very efficient manner, Sitharaman said that the DBUs will go a long way in giving further and faster digital banking in India and help our economy to move towards a cashless and inclusive economy.
On the ocassion, RBI Governor Shaktikanta Das in his address said that this is indeed a historic occasion when 75 Digital Banking Units (DBUs) are being dedicated to the service of the nation by the Prime Minister at a time when we are celebrating ‘Azadi Ka Amrit Mahotsav’. This is a joint initiative of the Government, the RBI, the Indian Banks Association and the participating banks.
ABOUT DIGITAL BANKING UNITS (DBUs)
The DBUs will enable those who do not have ICT infrastructure to access banking services digitally. They will also assist those who are not tech savvy to adopt digital banking. In DBU, the products and services will be offered to customers in 2 modes:
- Self Service Mode
- Digital Assistance Mode
DBUs will be different from traditional branch in following aspects:
- They will provide banking services including cash deposit & withdrawal 24 x 7.
- Services shall be provided digitally.
- People not having connectivity or computing devices can do banking transactions from DBU in a paperless mode.
- Bank staff will be available to help and guide users for banking transactions in assisted mode
- Will help in providing digital financial literacy and create awareness for adopting digital banking.
Services being offered through DBU include banking facilities like opening of savings account, balance-check, print passbook, transfer of funds, investment in fixed deposits, loan applications, stop-payment instructions for cheques issued, application for credit / debit cards, view statement of account, pay taxes, pay bills, make nominations, etc. The DBUs will also facilitate onboarding to Government credit link schemes through the Jan Samarth portal and end-to-end digital processing of a small ticket MSME/retail loans.
As part of the Union budget speech for 2022-23, the Finance Minister announced setting up the 75 DBUs in 75 districts to commemorate our country’s 75 years of independence. The DBUs are being set up with the objective to ensure the benefits of digital banking reach every nook and corner of the country and will cover all the States and Union territories. 11 Public Sector Banks, 12 Private Sector Banks and one Small Finance Bank are participating in the endeavour.
DBUs will be brick-and-mortar outlets which will provide a variety of digital banking facilities to people such as opening savings accounts, balance-check, print passbooks, transfer of funds, investment in fixed deposits, loan applications, stop-payment instructions for cheques issued, applying for credit/debit cards, view statement of account, pay taxes, pay bills, make nominations, etc.
DBUs will enable customers to have cost-effective, convenient access and enhanced digital experience of banking products and services throughout the year. They will spread Digital Financial Literacy and special emphasis will be given to customer education on cyber security awareness and safeguards. Also, there shall be adequate digital mechanisms to offer real-time assistance and redress customer grievances arising from business and services provided by the DBUs directly or through Business Facilitators/ Correspondents.
