Digital Banking Unit: What is it, how it is different from a regular bank and why netizens are lauding it

Digital Banking Units or DBUs is one of the most talked about terms in the country since Prime Minister Narendra Modi’s announcement. As part of the Union budget speech for 2022-23, the Finance Minister had announced the setting up of the 75 DBUs in 75 districts of the country to commemorate the 75 years of independence of our country. As revealed by the government, the DBUs are being set up with an objective to ensure benefits of digital banking reach every corner of the country. 

What is a Digital Banking Unit and how will it be different from an orthodox bank

DBUs will provide a variety of digital banking facilities to people such as opening of savings account, balance-check, print passbook, transfer of funds, investment in fixed deposits, loan applications, stop-payment instructions for cheques issued, apply for credit / debit cards, view statement of account, pay taxes, pay bills, make nominations, etc. 11 Public Sector Banks, 12 Private Sector Banks and one Small Finance Bank are participating in the endeavour.

In comparison to the regular banks, DBUs will be focused more on services that users can access themselves. These units will be based on digital infrastructure that will not require the staff like the banks that we are used to seeing.

How DBUs will work 24x7 and how it will benefit users

The Digital Banking Units or DBUs as mentioned above will be based on a self-service model thus these banks will be available 24x7. A couple of the banks such as SBI and PNB already offer 24x7 services such as cash withdrawal, cash deposit, passbook printings and others. The new initiative will enable users to access other services as well and that too at the time that is suitable to them.

The announcement from PM Narendra Modi has got a special appreciation from customers of numerous banks that either work the night shift or are working during the banking hours.