The RBI has released the guidelines for opening digital banking units (DBUs) by commercial lending institutions. The existing retail banking segment will now be sub-divided into digital banking and other retail banking.
DBU is a specialised fixed point business unit/hub housing certain minimum digital infrastructure for delivering digital banking products and services and servicing existing financial products and services digitally, in both self-service and assisted mode, to enable customers to have cost-effective/convenient access and enhanced digital experience in an efficient, paperless, secured and connected environment.
Scheduled commercial banks (other than RRBs, PBs, and LABs) with past digital banking experience are permitted to open DBUs in Tier 1 to Tier 6 centers, without having the need to take permission from the RBI. The DBUs of the banks will be treated as banking outlets (BOs) as defined in the relevant RBI circular.
Each bank will choose suitable smart equipment, such as interactive teller machines, interactive bankers, service terminals, teller and cash recyclers, interactive digital walls, document uploading, self-service card issuance devices, video KYC apparatus, secured and connected environment for use of its own device for digital banking, video call/ conferencing facilities, to set up a DBU.
The back-end including the core banking system and other back-office related information systems for the digital banking products and services can be shared with that of the incumbent systems with logical separation.
Adequate safeguards for cybersecurity of the DBUs will have to be ensured by the banks. Each DBU must offer certain digital banking products on both liabilities and assets side. The board shall review the progress and key performance indicators of digital banking services including that of DBU separately at a suitable periodicity.
