The RBI issues guidelines for banks to set up 24X7 Digital Banking Units

You can offer products and services 24/7 in both self-service and assistance modes

You can offer products and services 24/7 in both self-service and assistance modes

The Reserve Bank of India said Thursday that existing banks can launch digital banking units to offer 24/7 products and services in both self-service and assisted modes.

In the Union budget, the government announced the establishment of at least 75 such units in 75 districts to commemorate the country’s 75 years of independence as “Azadi ka Amrit Mahotsav”.

According to the guidelines for setting up Digital Banking Units (DBUs), the products and services to be provided at a DBU include account opening, cash withdrawal and deposit, KYC updating, loans and complaint registrations.

“Digital banking products and services would generally mean those financial products/services whose design and fulfillment have a near-continuous digital lifecycle, with initial customer acquisition/product delivery necessarily being digital through self-service or assisted self-service,” it said.

A DBU is a specialized, fixed-point business unit/hub that houses a certain minimum infrastructure for the delivery of digital banking products and services to ensure convenient and cost-effective banking for customers.

Proposed commercial banks with experience in digital banking will be allowed to open DBUs in Tier 1 to Tier 6 centers without having to seek permission from the RBI, the guidelines say.

Each DBU must be housed separately and have separate entry and exit regulations. These units will be separate from existing bank branches and will have formats and designs that best suit digital banking users, the guidelines say.

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