Digital Banking Units (DBUs)

As announced in the Union Budget 2022-23, 75 Digital Banking Units (DBUs) in different districts of the country will be set up so as to ensure that the benefits of digital banking are provided in the country in a consumer-friendly manner.

  • This was stated by the Union Minister of State for Finance Dr. Bhagwat Karad, in a written reply in Lok Sabha on April 4.
  • The DBUs are expected to be operationalized by the end of the current calendar year.
  • A Committee has been set up to prepare a roadmap for successful implementation of the said programme.
  • Criteria, such as relatively higher percentage of women population, youth, MSMEs, exports, geographically and strategically important locations, North-East area, SHG penetration, moderate level of digital adoption etc., will be taken in to consideration while finalizing the list of 75 districts for setting up of DBUs.
  • The units will serve three main purposes – customer acquisition, service as well as awareness.
  • People in the district will be able to get assistance starting from downloading the app of their bank to executing banking activities digitally.
  • DBUs will help banks themselves which are now looking to reduce physical footprint with fewer brick and mortar branches, with a ‘light’ banking approach.
  • The move will open up the rural market for service providers besides providing a boost to credit flow.
  • DBUs will also be cheaper to establish than a new branch, and can provide better customer experience aided by technology.

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