The Reserve Bank of India has issued the Reserve Bank of India (Payments Banks – Prudential Norms on Capital Adequacy) Directions, 2025, invoking its powers under the Banking Regulation Act to strengthen financial stability within the payments bank sector. These Directions take immediate effect and apply to all Payments Banks, outlining capital adequacy norms aimed at ensuring that such banks maintain sufficient regulatory capital aligned with their operational scale and risk exposure. The preliminary chapter clarifies the scope, stating that inclusion of any activity or transaction in the Directions does not automatically grant permission; instead, Payments Banks must comply with all applicable statutory and regulatory provisions before undertaking any activity. The framework underscores the RBI’s intent to reinforce prudential discipline, enhance systemic resilience, and safeguard public interest by requiring Payments Banks to operate within a clearly defined regulatory perimeter while maintaining adequate capital buffers. These Directions form the foundation for detailed norms governing capital adequacy and risk management.
RESERVE BANK OF INDIA
RBI/DOR/2025-26/211
DOR.CAP.REC.130/21-01-002/2025-26 | Dated: November 28, 2025
Reserve Bank of India (Payments Banks– Prudential Norms on Capital Adequacy) Directions, 2025
In exercise of the powers conferred under Section 35A of the Banking Regulation Act (BR Act), 1949, the Reserve Bank, being satisfied that it is necessary and expedient in the public interest and in the interest of banking policy so to do, hereby, issues the Directions hereinafter specified.
Chapter I
Preliminary
A Short title and commencement
1. These Directions shall be called the Reserve Bank of India (Payments Banks – Prudential Norms on Capital Adequacy) Directions, 2025.
2. These Directions shall come into effect immediately upon issuance.
B Applicability
3. These Directions shall be applicable to Payments Banks (PBs) (hereinafter collectively referred to as ‘banks’ or ‘PBs’ and individually as a ‘bank’ or ‘PB’).
Note: Mere mention of an activity, transaction, or item in these Directions does not imply that it is permitted. A bank shall refer to all applicable extant statutory and regulatory Directions and requirements while determining the permissibility or otherwise of an activity, transaction or item.
Read Full text of the Notification: https://rbidocs.rbi.org.in/rdocs/notification/PDFs/211MD.pdf
