RBI issues – Draft Reserve Bank of India – Digital Banking Channels Authorisation Directions, 2025 Date : Jul 21, 2025 on which comments are invited from public/stakeholders till August 11, 2025
Applicability:
The provisions of these Directions shall apply to all banks authorised to operate in India (commercial banks and cooperative banks).
Commercial banks Definition:
Commercial Banks refer to both scheduled and non-scheduled commercial banks which are regulated under Banking Regulation Act, 1949.
Cooperative banks Definition:
Cooperative Banks refer to those financial institutions under the Banking System in India that operate on the principles of cooperation and mutual benefit for their members.
What is ‘Digital Banking Channels’:
Digital Banking Channels refer to modes provided by the banks over web sites (i.e., internet banking), mobile phones (i.e., mobile banking) or other digital channels through electronic devices/equipment for the execution of financial, banking and other transactions as required for digital banking services which involve significant level of process automation and cross-institutional service capabilities.
Eligibility Criteria for providing view only banking facility:
- All banks which have implemented Core Banking Solution (CBS) and have enabled their public facing Information technology (IT) infrastructure
- The banks commencing view only digital banking channel(s), from date of applicability (in para 3), shall inform the concerned regional office of the Reserve Bank along with a copy of a ‘Gap Assessment and Internal Controls Adequacy’ (GAICA) report
Eligibility Criteria for providing transactional banking facility:
- Prior approval of the Reserve Bank for launching transactional banking facility
- Full implementation of CBS and public facing IT infrastructure being enabled to handle Internet Protocol Version 6
- Compliance with minimum regulatory CRAR requirement
- Net worth as per minimum regulatory requirement or ₹50 crore, whichever is higher, as on March 31st of the immediately preceding financial year
- Availability of adequate financial and technical capabilities for this facility
- A satisfactory track record of regulatory compliance including with cyber security guidelines and a sound internal control system
Compliance:
- The provisions (as amended from time to time) of the Information Technology Act, 2000, Digital Personal Data Protection Act, 2023, and other legal requirements. The jurisdiction of legal settlement would be within India.
- For transfer of funds from the accounts of customers using digital banking for delivery in cash to the recipients, conditions stipulated in the circulars dated July 24, 2024 on ‘Domestic Money Transfer – Review of Framework’ and dated October 05, 2011 on ‘Domestic Money Transfer- Relaxations’ as issued and updated from time to time by the Department of Payment and Settlement Systems (DPSS), Reserve Bank.
- Instructions issued by the Reserve Bank on ‘Customer Services Provided by Banks’ and other authorities on provision of banking facilities to persons with disabilities.
- FEMA 1999 and applicable instructions issued by the Reserve Bank.
Customer Conduct and Other Instructions:
- explicit consent
- Multiple channels
- Guidelines on customer protection
- to obtain and record mobile numbers of customers to send transaction alerts and other purposes in line with KYC requirements at the time of opening the accounts.
- appropriate risk mitigation measures in accordance with their policies like transaction limit (per transaction, daily, weekly, monthly), transaction velocity limit, fraud checks, etc. depending on their risk perception
- mobile banking service
- risk-based transaction monitoring and surveillance mechanism
- Third-party products and services
Exemptions:
The Reserve Bank may, if it considers necessary for avoiding any hardship or for any other just and sufficient reason, grant extension of time to comply with or exempt any regulated entity, from all or any of the provisions of these Directions either generally or for any specified period, subject to such conditions as the Reserve Bank may impose.
Interpretations:
For the purpose of giving effect to the provisions of these Directions, the Reserve Bank may, if it considers necessary, issue necessary clarifications in respect of any matter covered herein, and the interpretation of any provision of these Directions given by the Reserve Bank shall be final and binding on all the parties concerned.
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