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Rbi publishes guidelines on the creation of digital banking units

The Reserve Bank of India on Thursday issued guidelines on the establishment of digital banking units (DBUs) by commercial banks. This comes after Union Finance Minister Nirmala Sitharaman in the Union Budget 2022-23 proposed to establish 75 DBUs in 75 districts across the country.

All regular commercial banks (other than RRBs, PBs, and LABs) with previous digital banking experience are permitted to open DBUs at Tier 1-6 Centers, unless specifically restricted otherwise, without the need for obtain permission from the RBI in each case.

Each DBU should be hosted separately, with separate input and output arrangements. They will be separated from an existing banking point of sale with formats and designs most suitable for digital banking users, the apex bank said.

To accelerate digital banking initiatives, each DBU will be led by a suitably senior and experienced executive from the bank, preferably Level III or above for PSBs or equivalent grades for other banks, who may be designated as a Director general of the DBU, the RBI said.

“For the front-end or distribution layer of digital banking, each bank would choose appropriate smart equipment, such as interactive bank machines, interactive bankers, service terminals, ticket counters and recyclers, interactive digital walls , document uploading, self-service card issuance devices. , Video KYC device, secure and connected environment for using own device for digital banking, video calls/conferences, to set up a DBU. These facilities can be outsourced or outsourced while adhering to relevant regulatory guidelines,” he said.

“Each DBU must offer certain minimum digital banking products and services. These products must appear on both the liabilities and assets of the balance sheet of the digital banking segment. Digital services that add value to conventional products would also be considered as such “, said the RBI. noted.

(Edited by : Jomy Jos Pullokaran)

First post: STI

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