The Robots Are Coming!
The Reserve Bank of India has issued a set of guidelines for India banks to set up digital banking units (DBUs)
In the budgets speech, the FM had mentioned that there will be DBUs set up in 75 districts (to mark 75 years of Independence) this year. So now to start with, all scheduled commercial banks with past digital banking experience are allowed to open such units.
But what exactly is a DBU?
Well its essentially going to be a branch with some minimum digital infra such as interactive teller machines, interactive bankers, service terminals, interactive digital walls, document uploading, self-service card issuance devices, video KYC apparatus, etc.
The rules specify that products offered in a DBU must be on both the asset and liability side of a bank's balance sheet.
On the bank's liability side, savings account, current account opening, fixed and recurring deposit products, mobile and internet banking, debit card, digital kits for merchants and customers, UPI QR code, Point of sale terminal, etc., has been made mandatory.
And on the bank's asset side onboarding of retail, MSME customers for loans, digital processing of loans, and identified government-sponsored schemes covered under the national portal must be offered at any DBU.
Interesting times ahead, and we're really hoping this reduces the "Office Office" kind of experience many of us have become used to, especially at PSU Banks.