DBUs are brick-and-mortar outlets that provide facilities such as account opening, balance checking, fund transfer, fixed deposit investment, loan application, credit and debit card application, tax and bill payment, etc.
According to Delhi-based fintech solutions provider NextGen, the firm is looking to build the foundation for DBU.
“There is a need to bring technology-based solutions for these institutions to reduce operational costs and enable easy finance availability in tier two and three cities and rural areas. India, And the way to enable this solution, we should be targeting the full range of humble feature phone users,” said Taron MohanFounder of Next Gen.
Upon launch of DBU, reserve Bank of India Governor Shaktikanta Das had said that DBU will further enhance the digital infrastructure of the country.
“It will act as an enabler in the digital ecosystem and improve customer experience by facilitating seamless banking transactions,” he said, noting that DBU would be able to provide banking services in a paperless, efficient, safe and secure manner. Will enhance efforts to promote financial inclusion. atmosphere.
In April, the Reserve Bank of India (reserve Bank of India) Issued guidelines allowing scheduled commercial banks to open DBUs. As per the circular, the DBUs will be specialized fixed-point business units to digitally service digital banking products and services as well as existing financial products and services.
As per the RBI circular, setting up of DBUs should be part of the bank’s digital banking strategy, and each DBU will be headed by an adequately senior and experienced executive officer of the bank, who may be designated as Chief Operating Officer.chirp) dbu.