UPSC CSE WHY
UPSC CSE WHY

@CseWhy

10 Tweets 3 reads Oct 17, 2022
PM Modi dedicated 75 Digital Banking Units to the nation.
DBUs, Purpose, Aim, Operations, Services: all in this thread πŸ§΅πŸ“š (1/9)
What’s it? πŸ€”
- A specialise fixed point hub
- Has minimum digital infra
- Offers specialised services (2/9)
Purpose 😯
- Deliver baking products & services
- Servicing existing finance products digital
- Offers β€˜self-service’ mode
- 24*7 unit (3/9)
Aim 🎯
- Further financial inclusion
- Significantly improve experience for the citizens (4/9)
Operations πŸ‘ŒπŸ»
Commercial banks w/ past digital banking experience permitted to open DBUs in tier 1 to tier 6 cities
(other than RRBs, Payments Bank and Local Area Banks) (5/9)
Services 🏦
- Minimum digital banking products
- Such products to be both on Asset & Liability side
- Value added services are welcome (6/9)
In layman terms
- Bank accounts (current/savings)
- Cards (debit/credit)
- Mobile/Net Banking
- FDs, Digital kit
- Applications for retail or MSME loans (7/9)
DBUs v/s Fintech
Neobanks (fintech)
- offer digital banking services
- In partnership with NBFCs
- eg: @TheJupiterApp, @Razorpay, etc
- More innovative + Quick adoption (8/9)
Issue with Neobanks:
Arrangement with NBFCs makes β€˜em β€œglorified digital distribution companies”
While DBUs are independent arrangements run by Commercial banks (9/9)
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