Module: | Capital Adequacy, Basel Norms & Monetary Policy
Q19: Consider the following statements, regarding the governance and classification framework of a Digital Banking Unit (DBU):
1. For regulatory compliance, a DBU is treated as being opened in a centre from where it proposes to source more than 51 percent of its customers and business.
2. The catchment area for monitoring the progress of digital financial services education by a DBU is the specific district where the DBU is located.
3. The DBU must be headed by an officer designated as the DBU-Chief Operating Officer (D-COO).
4. The operational governance structure of the DBU must be aligned with the Digital Banking Segment of the bank.
2. The catchment area for monitoring the progress of digital financial services education by a DBU is the specific district where the DBU is located.
3. The DBU must be headed by an officer designated as the DBU-Chief Operating Officer (D-COO).
4. The operational governance structure of the DBU must be aligned with the Digital Banking Segment of the bank.
✅ Correct Answer: D
The correct answer is D. All statements are correct.
According to the RBI master directions on Digital Banking Units (DBUs), a DBU is technically treated as being opened in a specific geographical centre from where it proposes to source more than 51 percent of its customers and business.
The designated catchment area for aggressively monitoring the progress of digital financial services education and literacy by a DBU is strictly the specific district where it is located.
Furthermore, the DBU must be headed by a designated senior officer officially known as the DBU-Chief Operating Officer (D-COO), and its overall operational governance and reporting structure must be strictly aligned with the overarching Digital Banking Segment of the parent bank.
According to the RBI master directions on Digital Banking Units (DBUs), a DBU is technically treated as being opened in a specific geographical centre from where it proposes to source more than 51 percent of its customers and business.
The designated catchment area for aggressively monitoring the progress of digital financial services education and literacy by a DBU is strictly the specific district where it is located.
Furthermore, the DBU must be headed by a designated senior officer officially known as the DBU-Chief Operating Officer (D-COO), and its overall operational governance and reporting structure must be strictly aligned with the overarching Digital Banking Segment of the parent bank.