Pm Modi likely to inaugurate 75 digital banks on August 15

Prime Minister Narendra Modi will launch 75 digital banking units (DBUs) across 75 districts on August 15, to commemorate 75 years of India’s independence. Further, these units will also function as digital financial literacy centres for the customers. The DBUs will be fully digitalized, and also be utilized as digital financial learning centres for customers.

The government has identified 75 districts In fact, they have also been asked to set up infrastructure and start training manpower for these DBUs.

The financial institutions that have been selected have already begun working towards getting these units up and running by July 2022. These districts include Leh, Srinagar, Lakshadweep, Aizawl, Kota, Nainital, and Lucknow.

“All 75 districts have been finalised and allocated to respective banks to set up the infrastructure and train manpower for these specialised units,” an executive aware of the developments.

Leh, Srinagar, Lakshadweep, Aizawl, Kota, Nainital and Lucknow among other districts were identified. All the state-run, 10 private sector banks and one small finance bank have already started the work to have these units operational by July 2022, said the Indian Banks Association in a statement.

Guidelines have also been released by the Reserve Bank of India to set up DBUs. This was further cemented by an announcement in the Budget for setting up 75 DBUs.

What are DBUs?

A Digital Banking Unit (DBU) is a specialised fixed point business unit / hub housing certain minimum digital infrastructure for delivering digital banking products & services, Introduced with a prime objective of expansion of digital financial services and financial inclusion.
Scheduled commercial banks with past digital banking experience are permitted to open DBUs in Tier 1 to Tier 6 centres without having the need to take permission from Reserve Bank of India in each case, As per the guidelines.

The central bank said that they will be separate from an existing Banking Outlet with formats and designs most appropriate for digital banking users. The RBI said that the DBUs of the banks will be treated as Banking Outlets and that each one needs to be housed distinctly with the separate entry and exit provisions.

Adequate safeguards for the cyber security of the DBUs will have to be ensured by the banks, in addition to ensuring the physical security of the infrastructure of the DBU.