What are DBUs?
According to the Reserve Bank of India (RBI), a DBU is "a specialised fixed point business unit/hub housing certain minimum digital infrastructure for delivering digital banking products and services as well as servicing existing financial products & services digitally, in both self-service and assisted mode."
DBUs will provide several digital banking services to account holders.
According to RBI, DBUs will "enable customers to have cost-effective access and enhanced digital experience of such products and services in an efficient, paperless, secured and connected environment with most services being available in self-service mode at any time, all year round."
While inaugurating 75 DBUs on October 16, PM Modi said that DBUs simplify the banking procedure while providing a robust and secure banking system. Everything from sending money to taking loans will become easier.
According to the RBI, the purpose of DBUs is to optimally blend digital infrastructure with the "human touch". The banks should plan and implement remote or in situ assisted mode arrangements in the right proportion.
Indian states and DBUs
Karnataka, Tamil Nadu, Uttar Pradesh, Odisha and Rajasthan will get four DBUs each. They will be followed by Gujarat, Kerala, Madhya Pradesh, Maharashtra, Punjab, Sikkim and Telangana, with three DBUs each.
PSUs and DBUs
At 12, the State Bank of India (SBI) has opened the highest number of DBUs. The Bank of Baroda follows it with eight DBUs, and the Union Bank of India has opened six units.
Apart from the public sector banks, two private lenders, ICICI Bank and HDFC Bank, have also announced setting up DBUs.
With banking services, the DBUs will also provide hands-on education on safe digital banking products and practices to the customers.
DBUs will also offer grievance redressal services to the customers. Computers and the internet ushered in a new age of banking in India and the world. DBUs promise to take this a step further.
 "What are Digital Banking Units?")
