Fintech firms plan to focus on DBUs

18 Oct 2022 , 09:20 AM

As the government places a priority on promoting financial inclusion through digitization, fintech companies are looking into market prospects. Prime Minister Narendra Modi unveiled 75 Digital Banking Units (DBUs) on Sunday, stating that if Jan Dhan accounts had established the country’s financial inclusion as a whole, fintech will serve as the cornerstone for a financial revolution.

DBUs are physical locations that offer services including opening an account, checking your balance, transferring money, investing in fixed deposits, applying for loans, applying for credit and debit cards, paying bills and taxes, etc.

The company is attempting to provide the groundwork for the DBU, according to Next Gen, a provider of financial solutions based in Delhi.

Shakitkanta Das, governor of the Reserve Bank of India, stated that the introduction of DBUs will further improve the nation’s digital infrastructure.

The DBUs would support efforts to promote financial inclusion by offering banking services in a paperless, effective, safe, and secure environment, he said, stressing that this will operate as an enabler in the digital ecosystem and improve customer experience by facilitating seamless banking transactions.

Guidelines enabling the opening of DBUs by scheduled commercial banks were released by the Reserve Bank of India (RBI) in April. DBUs will be specialized fixed-point business units that will provide digital banking products and services as well as digitally maintain current financial products and services, according to the circular.

In accordance with the RBI circular, the creation of DBUs should be a component of a bank’s digital banking strategy. Each DBU will be led by a suitably senior and seasoned bank executive, who can be named the chief operating officer (COO) of the DBU.

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