75 Digital Banking Units
Source : PIB
GS III : Indian Economy
What is discussed under 75 Digital Banking Units?
- What are Digital Banking Units?
- How does this Bank differ from traditional Banking?
Why in News?
The Prime Minister, Shri Narendra Modi dedicated 75 Digital Banking Units (DBU) across 75 districts to the nation via video conferencing.
What is Digital Banking Unit?
- The DBUs will enable those who do not have ICT infrastructure to access banking services digitally.
Photo by Clay Banks on Unsplash - They will also assist those who are not tech-savvy to adopt digital banking.
- Products and services will be offered to customers in 2 modes :
- Self Service Mode
- Digital Assistance Mode
How DBU differ from traditional Banking?
- They will provide banking services including cash deposit & withdrawal 24 x 7.
- Services shall be provided digitally.
- People not having connectivity or computing devices can do banking transactions from DBU in a paperless mode.
- Bank staff will be available to help and guide users for banking transactions in assisted mode
- Will help in providing digital financial literacy and create awareness for adopting digital banking.
What are the services provided?
- Banking services like opening a savings account, checking the balance, printing a passbook, transferring money, investing in fixed deposits, applying for loans, giving stop-payment instructions for issued checks, applying for credit or debit cards, viewing the account statement, paying taxes, paying bills, making nominations, etc. are among the services provided by DBU.
- The DBUs would also support end-to-end digital processing of a small ticket MSME/retail loan as well as onboarding to government credit link initiatives through the Jan Samarth portal.
What are the Benefits?
- 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.
- Adequate digital mechanisms to offer real-time assistance and redress customer grievances.
Previous Year Question
Q. Pradhan Mantri Jan Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion. (2013)
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