🏦 Banking Technology · Exam 2026
Digital Banking
Units (DBU)
DBU Definition · 75 DBUs in 75 Districts · RBI Guidelines April 2022 · Paperless + Cashless + 24×7 · Services · DBU vs Branch · Who Can Set Up · 45 MCQs with Answers — for IBPS PO, RBI Grade B, SBI PO & all Bank Exams
IBPS PO/ClerkRBI Grade BSBI PO/Clerk
NABARDUPSC GS-IIIBank InternalSSC CGL
📋 Table of Contents
1. What is a DBU?
2. Why Were DBUs Launched?
3. Announcement & Numbers
4. Key Features
5. Services Provided
6. Customer Journey in DBU
7. DBU vs Traditional Branch
8. Who Can Set Up DBUs?
9. RBI Guidelines Summary
10. Significance for India
11. Banks That Launched DBUs
12. MCQ Practice (45 Qs)
13. Quick Revision Cards
🏦
Foundation — Most Asked DefinitionWhat is a Digital Banking Unit (DBU)?
A Digital Banking Unit (DBU) is a small, specially designed digital outlet of a bank that provides all banking services in fully digital mode — without cash counters and without paper forms. It is a paperless, cashless, self-service banking centre equipped with digital devices, kiosks, and video KYC facilities, supported by a few trained staff members.
⚡ Core Exam Definition
- DBU = Digital Banking Unit (NOT Digital Branch Unit or Digital Beneficiary Unit)
- A DBU is NOT a normal/traditional bank branch — it has no cash counters and no paper forms
- DBU operates on Assisted + Self-Service digital model
- Customers can open accounts, apply for loans, and make payments — all digitally
- Available 24×7 through self-service machines even outside banking hours
- Has limited staff — only for assisted digital support, not heavy counter operations
🎯
Purpose & VisionWhy Were DBUs Launched?
🌐
Digital Banking Access
Increase availability of digital banking services to all citizens — urban and rural.
🏘️
Remote Area Coverage
Provide banking services in areas where traditional full branches are not viable.
🌿
Reduce Branch Dependence
Reduce customer footfall and load on physical branches; shift services to digital.
🇮🇳
Digital India Mission
Support the Government’s Digital India and Financial Inclusion goals at grassroots level.
⏰
24×7 Self-Service
Enable banking services outside business hours through self-service kiosks and machines.
💰
Cost Reduction for Banks
Lower operational cost than full branches — fewer staff, no cash management, no paper.
📱
Digital Literacy
Help customers learn and adopt digital banking through assisted digital support at DBUs.
⚡
Faster Services
Reduce turnaround time (TAT) for account opening, loans, KYC — all processed digitally in minutes.
📢
Most Tested Numbers — Memorise AllAnnouncement & Key Numbers
🇮🇳
75 DBUs in 75 Districts — Azadi Ka Amrit Mahotsav
A landmark initiative to modernise banking access across India during the 75th year of Independence
Budget 2022–23
Announced in Union Budget
75 DBUs
Initial target (75 districts)
75 Districts
Spread across India
April 2022
RBI Guidelines issued
Oct 2022
First 75 DBUs inaugurated by PM
🎯 Exam Facts — Numbers to Memorise
- Announced in: Union Budget 2022–23 by Finance Minister
- Target: 75 DBUs in 75 districts to celebrate 75 years of Independence (Azadi Ka Amrit Mahotsav)
- RBI guidelines issued: April 2022
- First 75 DBUs inaugurated by Prime Minister on October 16, 2022
- All Scheduled Commercial Banks (PSBs + Private + SFBs) can set up DBUs
- Regulator: RBI (Reserve Bank of India)
✨
Characteristics — Know All 6Key Features of DBUs
| Feature | Explanation | Significance |
|---|---|---|
| Paperless 📄 | No physical forms or documents — all done digitally | Reduces processing time and cost |
| Cashless 💳 | No cash counters — only digital transactions (UPI, NEFT, RTGS, IMPS) | Promotes digital payments ecosystem |
| 24×7 Availability ⏰ | Self-service machines available round the clock | Banking beyond business hours |
| Minimal Staff 👤 | Only trained digital facilitators for assisted support — not heavy operations | Lower operational cost |
| Self-Service 🖥️ | Customers use kiosks, tablets, touch-screens to complete most services | Reduces wait time, empowers customers |
| Secure 🔐 | Biometric authentication, OTP verification, encrypted transactions | Protects customer data and transactions |
| Interoperable 🔗 | Must offer interoperable digital products (e.g., UPI works across banks) | Customer-centric, no bank lock-in |
| Assisted Model 🤝 | Digital-first with human assistance available for those who need help | Inclusive — serves digitally inexperienced too |
⚙️
RBI Categorises into Liability + Asset + OthersServices Provided by DBUs
🏛️ A — Liability Products (Account-related)
- Savings Account Opening (digital)
- Current Account Opening (digital)
- Fixed Deposits (FD)
- Recurring Deposits (RD)
- Digital Passbook / Account Statement
- Online Account Management
💰 B — Asset Products (Loan-related)
- Digital Loan Application
- Consumer Loans (Car, Bike, Personal)
- MSME Loans (digital processing)
- KCC / SHG loans (digital mode)
- Digital Credit Cards
- Quick loan approval & disbursal
🌐 C — Other Digital Services
- UPI / IMPS / NEFT / RTGS
- Fund Transfer (digital)
- Bill Payments
- Insurance & Investments
- Video KYC facility
- Customer Grievance Registration
✅ Services — Exam Key Points
- DBUs divide services into Liability Products (accounts/deposits) and Asset Products (loans)
- DBUs support all payment modes: UPI, IMPS, NEFT, RTGS — NOT just one
- DBUs provide Video KYC facility for digital customer onboarding
- DBUs do NOT have cash counters or ATM cash-out (cashless)
- DBUs do NOT handle paper forms (paperless)
- DBUs must provide end-to-end digital loan processing for MSME and consumer loans
🚶
How It WorksCustomer Journey in a DBU
STEP 1
🚶
Enter DBU
Walk into digital centre
STEP 2
🖥️
Use Kiosk/Tablet
Select required service
STEP 3
📷
Video KYC
Complete digital identity verification
STEP 4
📝
Digital Form
Apply for account / loan digitally
STEP 5
🔐
Authenticate
OTP / biometric / Aadhaar
STEP 6
✅
Instant Processing
Account opened / loan approved
STEP 7
🤝
Staff Help (if needed)
Assisted digital support available
⚖️
Most Tested ComparisonDBU vs Traditional Bank Branch
| Aspect | DBU (Digital Banking Unit) | Traditional Branch |
|---|---|---|
| Cash Handling | ❌ No cash counters | ✅ Full cash operations |
| Paper Forms | ❌ Completely paperless | ✅ Extensive paperwork |
| Working Hours | ✅ 24×7 (self-service machines) | ⏰ Limited (10 AM–4 PM) |
| Staff | Minimal — digital facilitators only | Full complement of officers and clerks |
| Account Opening | ✅ Instant digital + Video KYC | Physical forms + documents |
| Loan Processing | ✅ Fully digital — minutes/hours | Days to weeks (physical verification) |
| Customer KYC | Video KYC (digital) | Physical documents + in-person |
| Services | Full banking — digital mode only | Full banking — digital + physical |
| Speed | ✅ Very fast (automated) | Slower (manual processes) |
| Operational Cost | ✅ Low (minimal staff, no cash) | High (staff, cash, property) |
| Payments | UPI/NEFT/RTGS/IMPS only | Cash + digital |
| Banking Model | Digital-First | Traditional + Digital |
🏢
As per RBI GuidelinesWho Can Set Up DBUs?
🏛️
Public Sector Banks
SBI, PNB, BoB, Canara, Union, etc.
✅ Fully Eligible🏦
Private Sector Banks
HDFC, ICICI, Axis, Kotak, etc.
✅ Fully Eligible💼
Small Finance Banks
AU SFB, Ujjivan SFB, ESAF SFB, etc.
✅ Eligible📱
Payments Banks
Airtel Payments Bank, India Post, Paytm
⚠️ Limited Services🌍
Foreign Banks
Citibank, Standard Chartered, HSBC
⚠️ Only Existing Branch Locations📌 Key Rule — Foreign Banks
- Foreign Banks can only open DBUs in locations where they already have existing branches
- All Scheduled Commercial Banks = PSBs + Private + SFBs — are fully eligible
- Payments Banks can offer limited services (no loans as per their licence restrictions)
- RBI allows banks to set up DBUs independently — no specific RBI approval needed for each DBU
📜
RBI Master Guidelines — April 2022RBI Guidelines for DBUs
| RBI Requirement | Explanation |
|---|---|
| Separate Space | DBU must be a separate building or dedicated space — not inside existing branch |
| Secure Digital Infrastructure | Must have secure network, servers, and digital devices meeting RBI IT standards |
| End-to-End Digital Services | All services must be fully digital from start to finish — no hybrid physical processes |
| Assisted Digital Support | Trained staff must be present to help customers use digital services |
| Grievance Redressal | Mandatory customer grievance registration and resolution mechanism |
| Data Localisation | Customer data must be stored under Indian regulations (not foreign servers) |
| Interoperable Products | Digital products must be interoperable (e.g., UPI works across all banks) |
| Mandatory Products | Minimum set of Liability + Asset digital products must be available |
| Cybersecurity | Strong authentication (OTP, biometric), encryption, and cyber hygiene compliance |
| Self-Service Machines | Must have kiosks, tablets, or self-service terminals for customer use |
📌 RBI Guideline — Exam One-Liners
- DBU must be in a separate building/space — NOT co-located inside an existing branch
- RBI guidelines issued in April 2022
- Banks do NOT need prior RBI approval for each DBU — general framework applies
- DBUs must provide Video KYC for account opening
- Data must comply with Indian data localisation norms
- Must have customer grievance redressal mechanism mandatorily
🌟
Why It Matters for IndiaSignificance of DBUs
| Impact Area | How DBUs Help |
|---|---|
| Financial Inclusion | Reaches underbanked populations in remote/semi-urban areas without full branches |
| Digital India | Directly supports Digital India mission — digitises the banking delivery channel |
| Jan Dhan + UPI Ecosystem | Helps existing Jan Dhan account holders access full digital banking services |
| Digital Literacy | Assisted model educates citizens in digital banking — bridges digital divide |
| Bank Cost Efficiency | Lower cost than full branches → banks can expand reach profitably |
| Credit Delivery Speed | Digital loan processing → faster MSME and rural credit delivery |
| Employment Impact | Creates new roles for digital banking facilitators and tech staff |
| Azadi Ka Amrit Mahotsav | 75 DBUs symbolise 75 years of independence — connecting tradition with technology |
🏦
Have Already LaunchedBanks That Set Up DBUs
State Bank of India (SBI)
HDFC Bank
ICICI Bank
Union Bank of India
Bank of Baroda
Canara Bank
Punjab National Bank
Bank of India
Axis Bank
Kotak Mahindra Bank
Indian Bank
Bank of Maharashtra
✅ First 75 DBUs
- The first 75 DBUs were inaugurated by Prime Minister Narendra Modi on October 16, 2022
- Opened across 75 different districts of India — both urban and rural
- All major PSBs and leading private banks participated in the inaugural launch
- Post-inauguration, banks have been expanding DBUs to more locations pan-India
📝
Tap Any Option to Reveal AnswerMCQ Practice — 45 Questions
CH.1DBU — Basic Concepts & DefinitionsQ.01–Q.15
DBU stands for:
✔ Correct: A — Digital Banking Unit
DBU = Digital Banking Unit. A specially designed digital outlet of a bank providing all banking services in fully digital mode — without cash counters and without paper forms. The full form is frequently tested in bank exams.A DBU is primarily designed to provide:
✔ Correct: B — Fully digital and self-service banking
A DBU is designed to provide all banking services in fully digital mode — paperless, cashless, with self-service kiosks and minimal staff. It operates on an Assisted + Self-Service digital model.DBUs are primarily:
✔ Correct: A — Cashless and paperless digital outlets
The defining characteristics of DBUs = cashless (no cash counters) + paperless (no paper forms) + digital (all services through digital channels). This combination distinguishes DBUs from traditional branches.DBUs were announced in which Union Budget?
✔ Correct: C — Union Budget 2022–23
DBUs were announced in Union Budget 2022–23 by Finance Minister Nirmala Sitharaman. The target was 75 DBUs in 75 districts to celebrate 75 years of Indian Independence (Azadi Ka Amrit Mahotsav).How many DBUs were targeted to be set up initially?
✔ Correct: C — 75 DBUs in 75 districts
The target was 75 DBUs in 75 districts. The number 75 commemorates 75 years of Indian Independence (Azadi Ka Amrit Mahotsav). These were inaugurated by PM Narendra Modi on October 16, 2022.The 75 DBUs in 75 districts were launched to celebrate:
✔ Correct: B — Azadi Ka Amrit Mahotsav (75 years of Independence)
The 75 DBUs in 75 districts initiative was linked to India’s 75th year of Independence — Azadi Ka Amrit Mahotsav. The number 75 is symbolic, representing both the initiative’s scale and the anniversary.Who regulates and issues guidelines for Digital Banking Units?
✔ Correct: C — RBI (Reserve Bank of India)
RBI is the regulator for DBUs. RBI issued the master guidelines for DBUs in April 2022. The Ministry of Finance announced DBUs in the Budget, but RBI provides the regulatory framework.RBI issued detailed guidelines for Digital Banking Units in:
✔ Correct: B — April 2022
RBI issued the master guidelines for DBUs in April 2022. Sequence to remember: Budget announced DBUs (Feb 2022) → RBI guidelines (April 2022) → First 75 DBUs inaugurated (Oct 16, 2022).Which of the following is NOT mandatory in a DBU?
✔ Correct: B — ATM cash counters are NOT in DBUs
DBUs are cashless — they have NO cash counters or ATM cash withdrawal facilities. They process only digital payments (UPI, NEFT, RTGS, IMPS). Cash handling would contradict the DBU’s cashless design philosophy.A DBU differs from a normal branch mainly because it:
✔ Correct: C
DBU’s defining difference from a traditional branch: no cash counters (cashless) + no paper forms (paperless). DBUs DO have some staff — trained digital facilitators for assisted support. They operate fully online.DBU services are available for how many hours a day?
✔ Correct: C — 24×7 through self-service machines
DBUs offer 24×7 availability through self-service kiosks and digital machines. Even when staff have left, customers can use self-service terminals for account services, payments, and information. This is a key advantage over traditional branches.Which of the following services must a DBU provide?
✔ Correct: D — All of the above
DBUs must provide a comprehensive range of digital services: Liability Products (accounts, FD, RD), Asset Products (loans — MSME, consumer, KCC), and Other Services (UPI/NEFT/RTGS, KYC, grievances). Not limited to just one type.DBUs can provide which payment services?
✔ Correct: D — All digital payment modes
DBUs support all major digital payment modes: UPI, IMPS, NEFT, RTGS. This ensures customers can make any type of digital payment from a DBU. The “Only UPI” or “Only NEFT” options are wrong — DBUs offer comprehensive digital payments.A key feature of DBU loan services is:
✔ Correct: C — End-to-end digital loan processing
DBUs offer complete digital loan processing — application, verification, appraisal, approval, and disbursal all happen digitally. This significantly reduces turnaround time for MSME and consumer loans from days/weeks to hours.Staff at DBUs are primarily required to provide:
✔ Correct: C — Assisted digital support
DBU staff are trained digital facilitators whose role is to help customers navigate digital banking services. They do NOT handle cash or paper forms. DBUs operate on an Assisted + Self-Service digital model.CH.2Regulation, Guidelines & EligibilityQ.16–Q.28
Who can set up DBUs as per RBI guidelines?
✔ Correct: D — All Scheduled Commercial Banks
RBI allows all Scheduled Commercial Banks to set up DBUs — including Public Sector Banks, Private Sector Banks, and Small Finance Banks. Foreign banks can also set up DBUs but only in locations with existing branches.Foreign banks can open DBUs only in:
✔ Correct: B — Only where they have existing branches
Foreign banks can set up DBUs only in locations where they already have branches. This restriction ensures foreign banks can only extend their digital presence where they already have a physical presence in India.As per RBI guidelines, a DBU must be housed in:
✔ Correct: B — Separate building or dedicated facility
RBI mandates that DBUs must be in a separate building or dedicated secure space — NOT co-located within an existing branch. This ensures a distinct digital banking environment and proper security infrastructure.RBI requires DBUs to offer:
✔ Correct: B — End-to-end digital delivery
RBI’s core requirement = all services at a DBU must be delivered end-to-end digitally. No paper forms, no manual processes. The entire journey from application to completion must be digital.For data storage, DBUs must comply with:
✔ Correct: B — Indian data localisation norms
RBI mandates that DBUs must store customer data in compliance with Indian data localisation regulations. Customer financial data cannot be stored on foreign servers. This ensures data sovereignty and RBI’s supervisory access.DBUs use which authentication mechanisms for security?
✔ Correct: C — Biometric and OTP
DBUs use biometric authentication (fingerprint, iris) and OTP-based verification for strong customer authentication. This aligns with RBI’s cybersecurity requirements for digital banking systems.The term “interoperable digital products” in DBU context means:
✔ Correct: C — Works across different banks/platforms
Interoperable = works across different platforms, networks, and banks without restriction. UPI is the best example — a customer can pay from any bank to any bank. RBI requires DBUs to offer such interoperable digital products.Which type of products is RBI’s classification of DBU services? (Liability + Asset)
✔ Correct: C — Both Liability and Asset Products
RBI categorises DBU services into: Liability Products (account opening, FD, RD, digital passbook) and Asset Products (digital loans — personal, MSME, consumer, KCC). Plus other services (UPI/payments, KYC, grievances).DBUs can offer which loan types digitally?
✔ Correct: D — All loan types offered digitally
DBUs provide digital processing for all asset/loan products: Consumer Loans (car, bike, personal), MSME Loans, KCC (Kisan Credit Card), SHG loans, and Digital Credit Cards. Comprehensive digital credit delivery.DBUs are mandated by RBI to provide which of the following?
✔ Correct: C — Mandatory grievance redressal
RBI mandates that all DBUs must have a customer grievance registration and resolution mechanism. Customers must be able to lodge complaints and track their resolution digitally from within the DBU.Which KYC method do DBUs use for customer onboarding?
✔ Correct: C — Video KYC
DBUs use Video KYC (V-KYC) for customer identity verification — a live video call where the customer shows documents digitally. This enables fully digital customer onboarding without any physical document submission.DBUs mainly support which banking model?
✔ Correct: C — Digital-First Banking
DBUs represent India’s push towards Digital-First Banking — where digital channels are the primary (and often only) mode of service delivery. This shifts banking from the traditional branch-centric model to digital touchpoints.The first 75 DBUs were inaugurated by:
✔ Correct: C — Prime Minister of India
The first 75 DBUs were inaugurated by Prime Minister Narendra Modi on October 16, 2022. They were spread across 75 different districts of India (urban + rural) — symbolising 75 years of Independence.CH.3Impact, Significance & Applied MCQsQ.29–Q.45
DBUs contribute most directly to which national mission?
✔ Correct: B — Digital India
DBUs directly support the Digital India mission by extending digital banking access to all citizens, promoting a less-cash economy, digitising banking delivery, and supporting financial inclusion through digital channels.DBUs help in achieving:
✔ Correct: C — Financial inclusion
DBUs promote financial inclusion by bringing comprehensive digital banking services to underserved and remote areas — without needing costly full branches. Combined with Jan Dhan accounts, DBUs create a complete digital banking ecosystem.DBUs promote which type of economy?
✔ Correct: B — Digital economy
DBUs actively promote the digital economy by pushing all banking transactions to digital channels (UPI, NEFT, RTGS, IMPS) and eliminating cash handling. This reduces cash in circulation and strengthens India’s digital payment infrastructure.DBUs reduce which burden on traditional branches?
✔ Correct: C — Customer footfall and operational load
By handling routine digital transactions (account services, loan applications, payments), DBUs reduce customer footfall at traditional branches. This allows branch staff to focus on complex, high-value interactions and advisory services.DBUs help banks by:
✔ Correct: C — Reducing operational costs
DBUs offer substantial cost savings for banks: fewer staff, no cash management infrastructure, less paper/printing, smaller physical space, and automated processes. This makes expanding banking reach financially viable for banks.A customer walks into a DBU and wants to open a savings account. What happens?
✔ Correct: C — Digital kiosk + Video KYC
In a DBU, a customer opens a savings account by: using a digital kiosk/tablet, completing Video KYC for identity verification, authenticating via Aadhaar/OTP/biometric, and getting the account opened instantly in digital mode. No paper, no physical counter.Which of the following is TRUE about DBUs?
✔ Correct: C — Digital accounts without visiting traditional branch
DBUs enable complete banking onboarding and servicing without needing to visit a traditional full branch. They are regulated by RBI, can be in urban or rural areas, and have NO cash counters. They are digital banking access points.DBUs reduce turnaround time (TAT) for which processes?
✔ Correct: D — All of the above
DBUs reduce TAT across all services: loan processing (hours instead of days), account opening (minutes with Video KYC), and grievance resolution (digital tracking and faster response). Digital automation is the key enabler.A key KPI (Key Performance Indicator) of a DBU is:
✔ Correct: C — High digital adoption
The primary KPI of a DBU = digital adoption rate — how many customers are using digital banking services independently. This measures the DBU’s effectiveness in promoting digital banking and financial inclusion.In DBUs, customer onboarding must be:
✔ Correct: A — Fully digital
Customer onboarding at DBUs is fully digital: digital application forms, Video KYC for identity verification, Aadhaar-based or OTP authentication, instant account creation. No physical documents required.DBU promotion in rural India is aimed at reducing:
✔ Correct: C — Reducing digital exclusion
DBUs in rural India target digital exclusion — helping residents who lack digital banking access to experience and adopt digital services, with the help of trained facilitators on-site to guide them through the process.DBUs improve credit delivery by offering:
✔ Correct: B — Fast digital loan approval
DBUs enable rapid digital loan processing — MSME and consumer loans can be processed in hours rather than days or weeks. Digital loan assessment (credit scoring, document verification) is automated, dramatically reducing TAT.DBUs support which ecosystem?
✔ Correct: C — Unified Digital Banking ecosystem
DBUs support a unified digital banking ecosystem — all payment systems (UPI, IMPS, NEFT, RTGS), all account types, all loan products, and all support services are integrated into one digital delivery channel.Why did RBI create guidelines for DBUs?
✔ Correct: B — Expand and standardise digital banking
RBI guidelines for DBUs serve two purposes: expand digital banking to underserved areas and standardise the digital banking experience (mandatory products, security, governance) across all banks. This ensures quality and consistency.DBUs have trained staff primarily to:
✔ Correct: C — Help customers use digital services
DBU staff are digital banking facilitators. Their job is to assist customers — especially those less familiar with technology — in navigating kiosks, completing Video KYC, applying for products, and making digital payments.Which statement CORRECTLY summarises a Digital Banking Unit?
✔ Correct: C
A DBU = dedicated, paperless, cashless, 24×7 digital banking outlet offering end-to-end digital services (accounts, loans, payments, KYC). It is separate from existing branches, has minimal staff, and uses self-service + assisted digital model. Announced in Budget 2022–23, regulated by RBI (April 2022 guidelines).Which of the following statements about DBUs is INCORRECT?
✔ Correct: C — This statement is INCORRECT
DBUs are NOT cash-intensive. They are cashless — with NO cash counters. Options A, B, and D are all correct statements about DBUs. The deliberate placement of “cash-intensive” and “multiple cash counters” makes this a classic exam trap question.⚡
Last-Minute PrepQuick Revision Flash Cards
🏦 What is DBU?
- DBU = Digital Banking Unit
- Small, specially designed digital outlet of a bank
- All services in fully digital mode
- NOT a normal branch
- Paperless + Cashless + Self-service
📢 Key Numbers
- Announced: Union Budget 2022–23
- Target: 75 DBUs in 75 districts
- Celebrates: Azadi Ka Amrit Mahotsav (75 yrs)
- RBI guidelines: April 2022
- Inaugurated by PM Modi, Oct 16, 2022
✨ 6 Key Features
- Paperless — no paper forms
- Cashless — no cash counters
- 24×7 — self-service machines
- Minimal staff — digital facilitators only
- Self-service — kiosks and tablets
- Secure — biometric + OTP
⚙️ Services
- Liability: Savings/Current A/c, FD, RD
- Asset: Personal, MSME, Consumer, KCC loans
- Payments: UPI, IMPS, NEFT, RTGS (all)
- Video KYC for onboarding
- Grievance registration (mandatory)
⚖️ DBU vs Branch
- DBU: No cash counters | Branch: Has cash
- DBU: Paperless | Branch: Paper forms
- DBU: 24×7 | Branch: 10 AM–4 PM
- DBU: Minimal staff | Branch: Full staff
- DBU: Video KYC | Branch: Physical KYC
🏢 Who Can Set Up
- ✅ PSBs (SBI, PNB, BoB, Canara)
- ✅ Private Banks (HDFC, ICICI, Axis)
- ✅ Small Finance Banks
- ⚠️ Payments Banks (limited)
- ⚠️ Foreign Banks (existing branches only)
📜 RBI Guidelines
- Separate building/space (not inside branch)
- End-to-end digital services mandatory
- Assisted digital support (trained staff)
- Grievance redressal mechanism mandatory
- Data localisation (India norms)
- Strong cybersecurity & authentication
🌟 Significance
- Financial Inclusion (remote/rural access)
- Supports Digital India mission
- Helps Jan Dhan + UPI ecosystem
- Promotes digital literacy
- Reduces bank operational cost
- Faster MSME credit delivery
📌 Must-Know Keywords
DBU = Digital Banking Unit
75 DBUs, 75 Districts
Budget 2022–23
RBI Guidelines April 2022
Paperless + Cashless
24×7 Self-service
Video KYC
Azadi Ka Amrit Mahotsav
Digital-First Banking
Financial Inclusion
No Cash Counters
UPI + NEFT + RTGS + IMPS