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All you need to know about Digital Banking Units (DBUs) - AGSIndia

In the era of digitisation, Indian traditional payment channels such as Bank branches & ATMs have also seen numerous upgrades.

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All you need to know about Digital Banking Units (DBUs) - AGSIndia

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  1. AllyouneedtoknowaboutDigitalBankingUnits (DBUs) Intheeraofdigitisation,Indiantraditionalpaymentchannelssuchas Bankbranches&ATMshavealsoseennumerousupgrades. Inadditiontoenhancinguserexperience&convenience,theseupgrades and innovations have helped banks optimising resources without hampering their overall eciency. Further, given the fresh RFPs being floated by leading banks, it is estimated that there would be a deploymentofaround50,000ATMs/CRMsinthisfinancialyear. Recently,HonourablePrimeMinisterShriNarendraModiinaugurated 75 Digital Banking Units (DBUs) with the aim to provide last-mile accessibilityofbankingservices. WhatareDigitalBankingUnits? Each Digital Banking Unit (DBU) will be a specialised fixed point businesshubhousingdigitalinfrastructure.Unlikeatraditionalbank branch,DBUswillbecompletelypaperless. Inadditiontocashwithdrawal/depositthroughanATM/CRM,theDBUs will offer users a complete digital experience including the opening of bank accounts, fixed deposits & recurring deposits, printing of passbooks, mobile banking, internet banking, issuance of debit cards, creditcards,andmasstransitsystemcardsetc.,throughvariousdigital touchpoints.Theseserviceswillalsoincludeend-to-endprocessingof paperlessloansformerchantsandMSMEs. Howwilltheseservicesbenefitcustomers&banks? As DBUs will house most essential banking services in a secured and connectedenvironment,customerswillbeabletoavailbankingservices

  2. in a cost-effective, convenient and paperless manner – all year round. While these services will be made available through self-service mode, there will be manual assistance through select hours of the day. This assistance will help customers from rural, semi-urban, tier III & below areas, senior citizens, or customers with little or no digital experience to avail benefits of digital banking. Subsequently, this experience will increaseawarenessofdigitalpaymentsamongstawidergroupofpeople. For digitally-savvy customers, these DBUs will enhance the level of convenience and offer them the ease of doing mundane banking activities in a faster, seamless & secure digital environment. This will alsobenefitcustomersinremoteareas–especiallywithlowbanking penetrationasthecostofoperating&maintainingbankbrancheswill significantlygodown. TherearenumerousbenefitsofDigitalBankingUnitsforbanksaswell. With the setting up of DBUs, banks can reduce the size of physical branchesandenhancetheirdigitalcapabilitiestoofferlargely self-servicemodel-basedbankingfacilities,therebyreducingoverall operationalcosts. Howcanpaymenttechnologyplayershelpbanksinthisjourney? According to RBI’s notification on the Establishment of Digital Banking Units (DBUs) dated April 7, 2022, all Scheduled Commercial Banks (excluding Regional Rural Banks, Local Area Banks & Payments Banks) are allowed to opt for an insourced or an outsourced model for the implementation of DBU services. This notification also states that each Digital Banking Unit must house products such as PoS, ATMs, CRMs, Internet Banking Kiosks e-KYC kiosks etc. Since payment technology players such as AGS Transact Technologiesare already equipped to offer suchproducts&solutions,bankscanoutsourcethesettingupofDBUsto themandfocusonenhancingcustomerexperience.

  3. AsofSeptember30,2022,AGSTransactTechnologiesLtdhadinstalled, maintained or managed a network of approximately 73,582 ATMs and CRMs and installed 245,215 merchant PoS terminals. We also offer cheque deposit kiosks, interactive kiosks, and e-surveillance solutions, which will be integral for the seamless operation of a DBU. This puts AGSTTL in an advantageous position to manage full-fledged DBUs on behalfofleadingbankingcustomers. In conclusion, DBUs have the potential to transform Indian banking ecosystemandbringmorecustomersundertheambitofdigitalIndia.In tier 3 & below cities, DBUs can potentially deepen the acceptance of digital solutions with merchants opting for paperless loan procedures andretailcustomersenjoyinground-the-clockbankingfacilities. Further,itwilltrulyensurethecoexistenceofcash&digitalsolutions– therebystrengtheningtheoverallpaymentecosystempanIndia. AdetailedversionofthisarticlefirstappearedonLiveMint

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