Digital banking units can play key role in taking banking to doorsteps

The 75 Digital Banking Units (DBUs), that were unveiled by Prime Minister, Narendra Modi, will be used for accessing financial services without the need of a bank branch. To commemorate and celebrate 75 years of India's Independence, Prime Minister, Narendra Modi dedicated 75 Digital Banking Units (DBU) in 75 districts to the nation recently.

Talking to Bizz Buzz, Rajesh Mirjankar, MD and CEO of Kiya.ai, said: "India's digital stack for payments is now available on smart and feature phones. The next frontier on inclusion will be using DBUs for accessing financial services without the need of a bank branch."

With the advent of 5G and IoT the concept of DBUs will be more potent in providing financial inclusion for Bharat with video KYC, scanning of documents, printing statements and secure banking with Aadhaar token based authentication and other tokenisation based methods, he added.

State-run lender, Bank of Baroda, opened 8 DBUs as a part of these 75 DBUs launched by the PM. The 8 Bank of Baroda DBUs have been opened in Indore, Kanpur Dehat, Karauli, Kota, Leh, Silvassa, Vadodara and Varanasi.

All the services at the DBUs will be offered in a digital, paperless and completely secure manner. To cater to the needs and preferences of a vast cross-section of people, the DBU will provide services in two modes – a self service zone and a digital assistance zone that will provide assisted service.

The DBUs services being offered under self-service mode are available 24x7, 365 days a year. These services include cash withdrawals and deposits, account opening, opening of fixed deposit/ recurring deposit, availing digital loans, passbook printing, balance enquiry, fund transfer and a host of other services.

Sanjiv Chadha, CEO, Bank of Baroda, said, "In line with the government of India's vision for a digital India, the DBUs being launched today will help more people access digital banking products and services conveniently and securely and will play a key role in promoting financial literacy and financial inclusion in a digital manner."

At Bank of Baroda, we have been on a digital transformation journey and this far-reaching initiative will ensure that the benefit of digital banking reaches citizens across the length and breadth of our country, he said.

The initiative will help to deepen financial inclusion in the country. It has the future firmly in focus, and aims at offering a level playing field for existing and upcoming entities, while avoiding any regulatory or policy arbitrage.

Dilip Modi, Founder, Spice Money, says, "Digital operations in our country have risen exponentially over the last few years because of the increasing internet and smartphone penetration, with pandemic acting as a catalyst. Several consecutive steps by the government over the past few months have been in acknowledgement of the role of digital technology and fintech players, in catering to the underserved regions of the country."

We have been fortunate to be a part of this journey, providing customised solutions to the hinterlands of India, to cater to the unique needs of these regions, he said.

This will further help to get a robust banking infrastructure in the rural areas that contribute greatly to the country's GDP and where a majority of the population resides. Not only will this initiative aid in streamlining efforts towards bringing this significant part of India's underserved population to the fore of the formal banking sector, but also encourage more players to enter the market which will benefit the citizens of Bharat, and ultimately help them achieve financial freedom.

Addressing the gathering on the occasion on October 16, the Prime Minister said that the 75 DBUs will further financial inclusion and enhance banking experience for citizens. "DBU is a big step in the direction of ease of living for the common citizens", he said.

As part of the Union budget speech for 2022-23, the Finance Minister announced setting up the 75 DBUs in 75 districts to commemorate our country's 75 years of independence. The DBUs are being set up with the objective to ensure the benefits of digital banking reach every nook and corner of the country and will cover all the States and Union Territories. 11 public sector banks, 12 private sector banks and one small finance bank are participating in the endeavour.

DBUs will be brick-and-mortar outlets which will provide a variety of digital banking facilities to people such as opening savings accounts, balance-check, print passbooks, transfer of funds, investment in fixed deposits, loan applications, stop-payment instructions for cheques issued, applying for credit/debit cards, view statement of account, pay taxes, pay bills, make nominations, etc.

DBUs will enable customers to have cost-effective, convenient access and enhanced digital experience of banking products and services throughout the year. They will spread digital financial literacy and special emphasis will be given to customer education on cyber security awareness and safeguards. Also, there shall be adequate digital mechanisms to offer real-time assistance and redress customer grievances arising from business and services provided by the DBUs directly or through business facilitators/ correspondents.