RBI Releases Final Directions on Digital Banking Channels Authorisation

PR no. 2025-2026/1589; Dated: 28.11.2025

The Reserve Bank of India (RBI) has issued the final Digital Banking Channels Authorisation Directions, 2025, establishing a comprehensive regulatory framework for digital banking operations in India. These Directions apply to all banks authorised to operate in India, including both commercial banks and cooperative banks.

1. Scope and Applicability

The Directions govern the authorisation, governance, and conduct of digital banking channels offered by banks. They aim to ensure secure, reliable, and customer-centric digital banking services across the sector.

Applicability extends to:

• Scheduled commercial banks
• Small finance banks
• Payments banks (as applicable)
• Urban and state cooperative banks

2. Eligibility Criteria for View-Only Digital Banking

The Directions prescribe specific conditions for banks seeking to offer non-transactional or view-only digital facilities. These include:

• Demonstration of robust internal systems for data display
• Adequate cybersecurity safeguards
• Proper customer authentication mechanisms
• Compliance with IT governance standards prior to launch

These facilities enable customers to access account statements, balances, and other information without initiating transactions.

3. Eligibility Criteria for Transactional Digital Banking

Banks intending to provide full-fledged digital banking services—such as payments, transfers, and other online transactions—must meet enhanced eligibility norms, including:

• Strong operational resilience frameworks
• End-to-end encrypted digital infrastructure
• Tested and audited transaction and reconciliation systems
• Adequate fraud monitoring, alerting, and reporting mechanisms

The aim is to ensure smooth, secure, and reliable digital transactions for customers.

4. Technological Guidelines for Digital Banking

RBI has laid down detailed instructions on technology standards, including:

• IT governance, risk, and compliance frameworks
• Cybersecurity guidelines, including periodic audits and threat monitoring
• Requirements for high system availability and disaster recovery
• Data protection and privacy standards
• Use of secure APIs and third-party integration protocols

These guidelines ensure that digital channels remain resilient and function with minimal disruptions.

5. General Operational Guidelines

The Directions also provide common operational requirements applicable across all digital banking channels, such as:

• Mandatory board and senior management oversight
• Periodic reporting to RBI
• Transparent disclosure requirements
• Internal audit and compliance review obligations
• Policies on outsourcing technology or operational functions

These requirements help maintain consistency and governance across digital banking platforms.

6. Customer Conduct & Additional Instructions

The Directions emphasise customer protection and responsible conduct requirements, covering:

• Clear communication of terms, charges, and limits
• Robust grievance redressal mechanisms
• Standards to ensure fair treatment of customers
• Measures to prevent customer misuse or risky behaviour
• Liability allocation in cases of unauthorised transactions

Banks must ensure customer awareness, provide timely notifications, and maintain transparency across services.

7. Conclusion

The Digital Banking Channels Authorisation Directions, 2025 strengthen India’s digital banking landscape by setting unified standards for authorisation, security, and customer protection. With these Directions, the RBI aims to improve the resilience, reliability, and consumer-centric nature of digital banking across all authorised banks.

Click Here To Read The Full Press Release