Digital banking models in 75 districts, introduced within the Budget to commemorate the 75 years of the nation’s independence, are anticipated to develop into operational by July this yr.
To facilitate this, RBI final month launched a complete pointers on Digital Banking Units (DBUs).
As per the rules, DBUs of the banks shall be handled as banking retailers and every unit must be housed distinctly, with separate entry and exit provisions, Indian Banks’ Association (IBA) mentioned in a press release.
Further, it mentioned, banks have the choice to have interaction digital enterprise facilitators/ enterprise correspondents in conformance with related laws to broaden the digital footprint of DBUs.
“All the public sector banks, 10 private sector banks and one small finance bank have already initiated the work to have these units operational by July 2022,” it mentioned.
Finance minister Nirmala Sitharaman, whereas presenting the Union Budget 2022-23, introduced the organising of 75 DBUs in 75 districts to commemorate the 75 years of India’s independence (Azadi ka Amrit Mahotsav) with an goal to make sure advantages of digital banking attain each nook and nook of the nation.
A committee beneath the chairmanship of Ajay Kumar Choudhary, ED, FinTech Department, RBI, having illustration of senior officers from RBI, choose banks and IBA was shaped to format a highway map for institution of DBUs.
A working group beneath the chairmanship of Sunil Mehta, Chief Executive, IBA, and choose banks was constituted to facilitate the committee. The working group advisable a listing of 75 districts masking all of the states and Union Territories throughout the nation The progress in pilot implementation of the venture is being repeatedly monitored by the committee of RBI, it mentioned.
Emphasis has been given to buyer training on digital journey, cyber safety consciousness and safeguards, it mentioned.
“Also, there shall be adequate digital mechanism to offer real-time assistance and redress customer grievances arising from business and services offered by the DBUs directly or through business facilitators/correspondents,” it mentioned.
As per the rules, every DBU should supply sure minimal digital banking services and products — each on the asset (mortgage) and liabilities (deposits) aspect.
The new pointers say that DBUs are anticipated emigrate to delivering extra structured and custom-made merchandise from customary choices by use of their hybrid and high-quality interactive capabilities.
Source: www.financialexpress.com”