What are Digital Banking Units? Comment on how DBUs are the next big step in India’s digital banking journey.

Recently the Prime Minister of India has dedicated 75 digital banking units (DBU) across 75 districts to the nation. It was announced in the budget of 2022-23.

Digital banking units:

• It is a specialised business unit equipped with digital infrastructure, set up by a scheduled commercial bank, to deliver digital banking products and services to the masses.
• Their objective is to spread the reach of digital banking to all parts of the country.
• The DBU will Offer all banking services along with government credit linked schemes through Jan Samarth portal.
• It will provide banking services 24×7.
• All the services will be provided digitally.

Benefits:

• It will be especially beneficial to those people who do not have access to internet or computers.
• It will help to improve the financial literacy and awareness among the masses.
• It will boost the financial inclusion.
• It will increase the speed of payments and transactions.

The introduction of digital banking units is a step in the right direction to boost the penetration of digital banking to every nook and corner of the country.