From barter systems to banking systems continuously upgrade themselves for the betterment of their efficiency and effectiveness. Banking and technology are relatively associated and have changed over the period. In this Field of evaluation, a new concept of DBU means Digital Banking Unit is introduced by Finance Minister Sitharaman. Digital Banking Unit A digital banking unit is an innovative, customer-centric approach to banking that utilizes cutting-edge technology to provide customers with a faster, more convenient experience. It encompasses a range of digital channels such as mobile banking apps, digital banking websites, and automated customer service. Although the advantage of the Digital Banking Unit is very large but still with various limitations of security, awareness, and scalability which the author wants to address. It's simply a micro branch which gives a facility of24 hours without a bank person needed. Digital banking units are designed to streamline and enhance banking operations, allowing customers to manage their accounts, make payments, and transfer money with ease. They offer several features, including a secure, real-time view of customer accounts, and the ability to transfer funds from one account to another. Additionally, digital banking units are designed to be cost-effective, with lower costs associated with the implementation and maintenance of the technology. This paper gives insight into various advantages and challenges in the present scenario.

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Keywords: Digital Banking Unit, Banking System, Traditional Bank, Kiosk Banking Facility, Digital Bank.