Wednesday, May 18, 2022
Home > Finance News > Indian Banks’ Association upbeat on July rollout of Digital Banking Units

Indian Banks’ Association upbeat on July rollout of Digital Banking Units

Digital Banking Units (DBUs), proposed in this year’s Union Budget, will be ready by July and will help push the cause of financial inclusion once rolled out, Indian Banks’ Association chief executive Sunil Mehta told ET. “The progress in pilot implementation of the project is being regularly monitored by the committee of the Reserve ,” he said.

All public sector banks, 10 private sector banks and one small finance bank have already initiated the work to have these units operational by July 2022.

Last month, the RBI had issued guidelines allowing scheduled commercial banks to open DBUs. According to the circular, DBUs will be specialised fixed point business units for delivering digital banking products and services, as well as servicing existing financial products and services digitally.

Finance minister Nirmala Sitharaman had proposed to set up 75 DBUs in 75 districts across India through scheduled commercial banks.

Banks & Vigilance Issues

Mehta noted that under the recently concluded PSB Manthan, lenders have agreed to share their best practices while looking at innovative solutions. “This will further strengthen the state-run banks,” he said

On undue scrutiny from vigilance agencies over commercial decision taken by bankers, Mehta said the Advisory Board for Banking and Financial Frauds (ABBFF) is a good initiative as it acts as a safety valve and bankers are protected from undue harassment.

“Going forward, we expect investigation agencies, including the police, will abide by the decisions of this advisory board and thus commercial decision of bankers will not be construed as fraud,” he said.

In August 2019, the Central Vigilance Commission (CVC) in consultation with RBI had constituted a four-member ABBFF headed by former banker and ex-vigilance commissioner TM Bhasin to investigate banking and financial frauds of ₹50 crore and above.

Source link

Leave a Reply

Your email address will not be published.

%d bloggers like this: