Module: | Deposits, Reserve Ratios & Branch Authorisation
Q300: Which of the following statements, regarding the operational mandates and restrictions for a Digital Banking Unit (DBU), are correct?
1. A DBU must be housed distinctly, with separate entry and exit provisions from any existing Banking Outlet.
2. DBUs are permitted to process cash withdrawals and deposits physically across a counter.
3. A DBU is prohibited from offering any product or service that the bank is not permitted to offer under the Banking Regulation Act, 1949.
4. The minimum bouquet of services offered must include digital onboarding for schemes like Atal Pension Yojana (APY) and digital grievance lodging.
2. DBUs are permitted to process cash withdrawals and deposits physically across a counter.
3. A DBU is prohibited from offering any product or service that the bank is not permitted to offer under the Banking Regulation Act, 1949.
4. The minimum bouquet of services offered must include digital onboarding for schemes like Atal Pension Yojana (APY) and digital grievance lodging.
✅ Correct Answer: B
The correct answer is B. Statements 1, 3, and 4 are correct.
Statement 2 is entirely incorrect because DBUs are conceived as highly automated, paperless, and strictly digital zones.
Therefore, they are explicitly required to handle cash withdrawals and cash deposits exclusively through self-service machines such as ATMs and Cash Deposit Machines (CDMs). Processing cash physically across a traditional teller counter is strictly prohibited in a DBU.
Additionally, DBUs must maintain distinct entry/exit points (Statement 1), adhere to the foundational product restrictions of the Banking Regulation Act, 1949 (Statement 3), and offer a mandated minimum bouquet of digital services including APY onboarding and digital grievance redressal (Statement 4).
Statement 2 is entirely incorrect because DBUs are conceived as highly automated, paperless, and strictly digital zones.
Therefore, they are explicitly required to handle cash withdrawals and cash deposits exclusively through self-service machines such as ATMs and Cash Deposit Machines (CDMs). Processing cash physically across a traditional teller counter is strictly prohibited in a DBU.
Additionally, DBUs must maintain distinct entry/exit points (Statement 1), adhere to the foundational product restrictions of the Banking Regulation Act, 1949 (Statement 3), and offer a mandated minimum bouquet of digital services including APY onboarding and digital grievance redressal (Statement 4).