: RBI allows banks to open digital banking units; mandates onboarding MSME customers for loans #FinanceIndia #StockMarketNEWS RBI allows banks to open digital banking units; mandates onboarding MSME

@StockMarketNEWS Tue 12 Apr, 2022

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RBI allows banks to open digital banking units; mandates onboarding MSME customers for loans #FinanceIndia #StockMarketNEWS
RBI allows banks to open digital banking units; mandates onboarding MSME customers for loans New Delhi, April 8 (KNN) The Reserve Bank of India (RBI) has laid down norms to allow commercial banks to open Digital Banking Units (DBU) while mandating minimum products and services that must be offered in these units.

The banking regulator has mandated minimum products and services that banks must offer in these DBUs.

“Each DBU must offer certain minimum digital banking products and services. Such products should be on both liabilities and assets side of the balance sheet of the digital banking segment, RBI said.

Among asset products, onboarding of retail, MSME customers for loans, digital processing of loans, and identified government-sponsored schemes covered under the national portal has been mandated.

Among liability products, 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. have been mandated.

The Union Budget of 2022-23 had announced the setting up of 75 Digital Banking Units (DBUs) in 75 districts to commemorate the 75 years of independence of our country.

To start with, all scheduled commercial banks with past digital banking experience are allowed to open such units except for regional rural banks, local area banks and payments banks, without prior approval of the RBI in tier-1 to tier-6 cities.

DBU has been defined as a specialized fixed point business unit or hub housing a certain minimum digital infrastructure for delivering digital banking products and services as well as servicing existing financial products and services digitally, in both self-service and assisted mode.

The aim of DBU is to enable customers to have cost effective and convenient access and enhanced digital experience of such products and services in “an efficient, paperless, secured and connected environment with most services being available in self-service mode at any time, all year round.”

The norms on setting up of DBU are effective immediately. (KNN Bureau)