Mumbai : In the Union Budget 2022-23 the finance minister made announcements for setting up of 75 Digital Banking Units (DBUs) in 75 districts to commemorate the 75 years of independence of the country.
In pursuance of the budget announcement a ‘Committee for the establishment of Digital Banking Units (DBUs)’ was set-up by the Reserve Bank to outline a roadmap for the establishment of DBUs.
The Committee after necessary consultations and deliberations gave its recommendations on different aspects of DBU viz., the digital banking unit model, facilities to be offered in DBUs, monitoring of functioning of DBUs, cyber security and other IT related aspects, role of DBU in the spread of digital banking awareness, etc.
Based on the recommendations of the Committee, the guidelines on ‘Establishment of Digital Banking Units’ have been finalised, RBI said in a statement.
Digital Banking Unit is a specialised fixed point business unit/hub housing certain minimum digital infrastructure for delivering digital banking products & services as well as servicing existing financial products & services digitally, in both self-service and assisted mode, to enable customers to have cost-effective/ convenient access and enhanced digital experience to/ 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.
As per the guidelines released by the RBI, the Digital Banking Units of the banks will be treated as banking outlets.
Meanwhile, releasing its flagship Asian Development Outlook (ADO) 2022, the Manila-based multi-lateral funding agency said the growth in South Asia is projected to slow to seven per cent in 2022, before picking up to 7.4 per cent in 2023.
The subregion’s growth dynamics are largely driven by India and Pakistan. South Asian economies are expected to expand collectively by seven per cent in 2022 and 7.4 per cent in 2023, with India — the sub-regions largest economy – expected to grow by 7.5 per cent this fiscal year (FY23) and eight per cent next fiscal year (FY24), the agency’s ADO report said.
Pakistan’s growth is forecast to moderate to four per cent in 2022 on weaker domestic demand from monetary tightening and fiscal consolidation before picking up to 4.5 per cent in 2023, it said.
ADB said developing Asia’s economies are predicted to grow by 5.2 per cent this year and 5.3 per cent in 2023, thanks to a robust recovery in domestic demand and continued expansion in exports.
However, uncertainties stemming from the Russian invasion of Ukraine, the continuing coronavirus disease pandemic, and tightening by the US Federal Reserve pose risks to the outlook, ADB Outlook said.