RBI Grade BNABARD ESISEBI
In one lineMore on this exam
Context:
“RBI MPC Unpacked: Key Theory Meets Today’s Macro Trends”Tap to play · from the C4S channel
The government is set to review the performance of Digital Banking Units (DBUs) established by state-run banks to strengthen financial inclusion, enhance customer convenience, and support government schemes like periodic re-KYC and unclaimed financial asset campaigns.
About Digital Banking Units (DBUs)
DBUs are specialised brick-and-mortar outlets established by banks to provide digital banking products and services to customers using self-service and assisted digital channels.
Objective:
To ensure universal access to digital banking, especially in semi-urban and rural areas, as part of India’s broader Digital Financial Inclusion mission.
Background:
- DBUs were launched in October 2022 by Prime Minister Narendra Modi under the Azadi Ka Amrit Mahotsav initiative.
- The Reserve Bank of India (RBI) issued detailed guidelines in April 2022 for their establishment and operation.
- DBUs are treated as banking outlets as per RBI guidelines issued in April 2022.
- 75 DBUs were inaugurated across 75 districts to mark 75 years of India’s independence.
Current DBU Landscape:
- 114 DBUs operational across 104 districts.
- Focused primarily on tier-5 and tier-6 cities to improve financial literacy and facilitate access to government programmes.
Services Offered by DBUs:
- Digital banking products and services in self-service and assisted modes.
- Opening savings bank accounts, passbook printing, fund transfers, and loan applications.
- Onboarding for government flagship programmes such as Jan Suraksha schemes.
- Conduct financial literacy campaigns and virtual workshops on cybersecurity and government campaigns.
