Digital banking to become easier, service will start in 75 districts from July
New Delhi: The digital banking units in 75 districts are expected to be operational by July this year. To facilitate this, RBI had last month issued a comprehensive guideline on Digital Banking Units (DBUs). It was announced in the budget to commemorate 75 years of the country's independence. Indian Banks' Association (IBA) in a statement said that as per the guidelines, DBUs of banks will be treated as banking outlets and each entity should be differentiated with separate entry and exit provisions. Further, banks have the option to include Digital Business Facilitators/Business Correspondents as per relevant regulations for the extension of DBUs.
According to him, all the public sector banks, 10 private sector banks and one small finance bank have already started the work of making these units operational by July 2022. Presenting the Union Budget 2022-23, Finance Minister Nirmala Sitharaman had announced setting up of 75 DBUs in 75 districts to celebrate 75 years of India's independence (Azadi Ka Amrit Mahotsav). It aims to ensure that the benefits of digital banking reach every nook and corner. A committee headed by Ajay Kumar Choudhary, ED, Fintech Department, RBI, was constituted to prepare a road map for setting up DBUs. The committee is represented by senior officials from RBI, select banks and IBA.
For the convenience of the committee, a working group was constituted under the chairmanship of Sunil Mehta, Chief Executive of IBA and select banks. The working group has recommended a list of 75 districts covering all states and union territories across the country. As per the guidelines, every DBU should offer certain minimum digital banking products and services such as loans and deposits. The Government and private players have pushed for digital products during the Covid19 peak. While still there are few pockets left in the country which are still unbanked.