Banks can outsource e-banking units: RBI

Mumbai: The Reserve Bank of India (RBI) has announced guidelines for banks to set up dedicated digital banking units (DBUs) separate from regular bank branches using the outsourced model. The new standards are in line with a budget announcement and are based on the recommendation of a panel comprising members of the RBI and the banking industry.
“Regular commercial banks (other than regional rural banks, payment banks and local banks) with previous digital banking experience are permitted to open DBUs in Tier 1–6 centers unless specifically restricted otherwise , without the need to obtain permission from the RBI in each case,” the central bank said in its circular.
The RBI has stated that banks are free to adopt an outsourced or outsourced model for DBU operations. These are also permitted to use application programming interfaces (APIs) to connect to external third-party application providers. However, these applications should be tested in an isolated environment before being integrated into bank systems.
The objective of having physical branches to promote digital banking aims to combine the bank’s digital infrastructure with the human touch by offering a remotely assisted mode or in DBU. The minimum bouquet of products that DBUs are expected to provide include account opening kits, digital kits for mobile banking, internet banking, debit cards, credit cards and payment system cards. public transport. On the payment side, DBUs will help merchants on board by providing them with digital QR codes or point-of-sale terminals. In her budget speech, Finance Minister Nirmala Sitharaman had said that to ensure that the benefits of digital banking reach every nook and cranny of the country in a consumer-friendly manner, it is proposed to establish 75 DBUs in 75 districts of the country on schedule. commercial banks. Sitharaman had also said that budget support for the digital payment ecosystem announced in the previous budget would continue.

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