The government will review the performance of digital banking units (DBUs) set up by state-run banks to further drive its financial inclusion schemes and enhance customer convenience, including services such as periodic customer verification (re-KYC).
At present there are 114 DBUs set up in 104 districts.
The government is looking to improve the functioning of DBUs and integrate them with more financial inclusion initiatives, including saturation campaigns involving account opening, update of nomination details and enrolment under social security schemes, said people familiar with the developments. These units could also be leveraged to identify the rightful owners of unclaimed bank accounts and return the assets.
"We will be sharing our progress on DBUs as part of our second-quarter report on initiatives under the EASE (Enhanced Access and Service Excellence) bank reforms. The idea is to further align the DBU set up with ongoing government initiatives like re-KYC and the campaign on unclaimed financial assets," said an executive at a state-run bank, requesting anonymity.
Under the existing mandate, a DBU provides digital banking products and services, besides servicing existing financial products and services digitally, in both self-service and assisted modes for convenient access.
"Since most DBUs are to be opened in tier-5 or -6 cities, the idea is that there should be a thrust on creating awareness and financial literacy besides enrolling more numbers in the government's beneficiary schemes," said another bank executive, noting that already the structure provides for onboarding of customers for government flagship programmes, including Jan Suraksha schemes.
The other facilities provided include opening of savings bank accounts, passbook printing, transfer of funds, and loan applications with most services being available in a self-service mode at any time, all year round.
Banks already conduct financial literacy camps through DBUs, said another bank executive. "We also take the lead in encouraging customers to take virtual workshops on issues such as cybersecurity and other government campaigns."
Announced in the FY23 budget, scheduled commercial banks (other than regional rural banks, payment banks and local area banks) with past digital banking experience are permitted to open DBUs in tier-1 to tier-6 centres, unless otherwise specifically restricted, without having the need to take permission from the Reserve Bank of India in each case.
The DBUs will be treated as banking outlets, as per RBI guidelines issued in April 2022.
At present there are 114 DBUs set up in 104 districts.
The government is looking to improve the functioning of DBUs and integrate them with more financial inclusion initiatives, including saturation campaigns involving account opening, update of nomination details and enrolment under social security schemes, said people familiar with the developments. These units could also be leveraged to identify the rightful owners of unclaimed bank accounts and return the assets.
"We will be sharing our progress on DBUs as part of our second-quarter report on initiatives under the EASE (Enhanced Access and Service Excellence) bank reforms. The idea is to further align the DBU set up with ongoing government initiatives like re-KYC and the campaign on unclaimed financial assets," said an executive at a state-run bank, requesting anonymity.
Under the existing mandate, a DBU provides digital banking products and services, besides servicing existing financial products and services digitally, in both self-service and assisted modes for convenient access.
"Since most DBUs are to be opened in tier-5 or -6 cities, the idea is that there should be a thrust on creating awareness and financial literacy besides enrolling more numbers in the government's beneficiary schemes," said another bank executive, noting that already the structure provides for onboarding of customers for government flagship programmes, including Jan Suraksha schemes.
The other facilities provided include opening of savings bank accounts, passbook printing, transfer of funds, and loan applications with most services being available in a self-service mode at any time, all year round.
Banks already conduct financial literacy camps through DBUs, said another bank executive. "We also take the lead in encouraging customers to take virtual workshops on issues such as cybersecurity and other government campaigns."
Announced in the FY23 budget, scheduled commercial banks (other than regional rural banks, payment banks and local area banks) with past digital banking experience are permitted to open DBUs in tier-1 to tier-6 centres, unless otherwise specifically restricted, without having the need to take permission from the Reserve Bank of India in each case.
The DBUs will be treated as banking outlets, as per RBI guidelines issued in April 2022.
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