Banks At Your Doorsteps: What Are Digital Banking Units & How Does It Enable Financial Inclusivity?

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The Logical Indian Crew

Banks At Your Doorsteps: What Are Digital Banking Units & How Does It Enable Financial Inclusivity?

With the government preparing to install 75 Digital Banking Units across 75 districts of the country, here's all you need to know about these units and the services they offer to enable easier and convenient banking.

Prime Minister Narendra Modi, on October 16, announced that 75 Digital Banking Units (DBU) would be set up across 75 districts to expand the idea of financial inclusion. He claimed that through this system benefits of digital banking would reach every nook and corner of the country and that they would be taking banks to "the doorstep of the poor". It would empower the common citizen through simplified and more secure banking procedures.

The initiative is also expected to further strengthen the country's economic growth by providing maximum services through minimum infrastructure. However, it is essential to understand what these DBU's are, and what services are being made available through them.

What are DBUs And What Do They Offer?

DBUs are brick-and-mortar outlets that would enable customers to have a cost-effective and enhanced digital experience of banking services with convenient access. With its instalment, people would not have to travel distances to avail banking services, reducing the complications many face within the sector.

DBUs provide a range of digital banking facilities such as "opening of savings accounts, balance-check, printing passbooks, transfer of funds, investment in fixed deposits, loan applications, stop-payment instructions for cheques issued, applications for credit and debit cards, tax and bill payment and nominations", as stated by the Prime Minister's office. Several small banks, as well as ICICI and HDFC, would collaborate with the government to set up DBUs.

Banking Made Easier

The DBUs set up by ICICI and HDFC are expected to have distinct features of a Self-service Zone and a Digital Assistance Zone.

The self-service zone would enable the customer to carry out their banking procedures personally. Customers can access the ATM, a Cash Deposit Machine (CDM) and a Multi-Functional Kiosk (MFK) that offers services like printing passbooks, and depositing a cheque. They would also have a provision to interact with chatbots in case they need information regarding a product, offer, or notice from the bank.

The Digital Assistance Zone, on the other hand, would have branch officials assisting the customers while undertaking services such as opening a savings account, current account, fixed deposit, recurring deposit, and so on. These would be run entirely digitally through a tablet device, using Aadhaar-based eKYC, according to an article by LiveMint.

Also Read: Banking Frauds Of Over Rs 1,000 Crores Witness Significant Decline In Fraud Cases In FY22

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Writer : Laxmi Mohan Kumar
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Editor : Snehadri Sarkar
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Creatives : Laxmi Mohan Kumar

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