RBI Issues Draft Master Directions on ‘Digital Banking Channels Authorisation’

The Reserve Bank of India (RBI) has released the draft Master Directions titled ‘Digital Banking Channels Authorisation’, marking a significant step towards standardising and regulating the growing digital banking ecosystem in India.

1. Scope of the Directions

The draft Master Directions provide a comprehensive framework for entities offering digital banking services. Key areas covered include:

• Technological guidelines for ensuring robust and secure digital infrastructure
• General instructions applicable to all regulated entities
• Compliance requirements and reporting norms
• Customer conduct standards, including grievance redressal and transparency
• Other operational aspects critical to digital banking operations

2. Exemptions, Interpretations & Repeals

In addition to functional guidelines, the draft also outlines:

• Norms for exemptions, if any, for certain classes of entities or services
• Provisions for interpretation of the directions by the RBI
• Repeal of earlier circulars or guidelines, where these directions will supersede previous instructions
• Prudential requirements to ensure financial and operational stability

3. Public Feedback Invited

The RBI has invited public and stakeholder comments on the draft until August 11, 2025. This consultative approach is aimed at ensuring that the final directions are practical, inclusive, and future-ready.

4. Conclusion

These directions aim to streamline authorisation, enhance digital governance, and safeguard consumer interest in a rapidly evolving banking landscape. Stakeholders, including banks, fintech firms, and digital payment operators, are encouraged to review and provide inputs before the deadline.