A working group (WG) chaired by Sunil Mehta, Chief Executive, IBA, formed to assist the committee for the establishment of digital banking units (DBUs), has recommended 75 districts across the country, covering all states and union territories. 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.
A committee for the establishment of DBUs, chaired by Ajay Kumar Choudhary, ED, fintech department, RBI, and comprised of senior officials from the RBI and a few select banks, was formed to lay out a roadmap for the successful establishment of DBUs. The committee monitors the progress of the pilot implementation of the project on a regular basis.
The RBI has also released guidelines on digital banking units. As per the guidelines, the DBUs of the banks will be treated as banking outlets and each DBU needs to be housed distinctly, with the separate entry and exit provisions. Further, banks have the option to engage digital business facilitator / business correspondents in conformance with relevant regulations to expand the virtual footprint of DBUs. Emphasis has been given to customer education on digital journey and cyber security awareness and safeguards.
