DBU is a specialized fixed point business unit / hub that houses certain minimal digital infrastructure for delivering digital banking products and services, as well as servicing existing financial products and services digitally, in both self-service and assisted mode, to enable customers to have cost effective/convenient access to/of such products and services in an efficient, paperless, secured, and connected environment with most services.
All scheduled commercial banks (other than RRBs, PBs, and LABs) with prior digital banking experience are permitted to open DBUs in Tier 1 to Tier 6 centers, unless otherwise specifically restricted, according to RBI’s detailed guidelines, without the need to seek permission from the Reserve Bank of India in each case.
I believe that digital banking units can enable last-mile financial inclusion by allowing lenders to reach a larger customer base at a lower cost. The digital economy is quickly expanding. Next-generation solutions are required in all sectors of the economy, including commerce, finance, and logistics. The government’s focus on human capital development and the creation of courses in this area is quite welcome. This will also aid in the retraining of human capital for the new economy.
DBU’s shortcomings include limited public awareness and broadband penetration in lower-tier cities. Furthermore, if DBUs are to realize their full potential, issues such as cyber security, data privacy, and phishing must be addressed.