What changed
RBI has consolidated and updated all prior branch authorisation guidelines into a single comprehensive direction effective November 28, 2025. The new framework includes specific chapters on Digital Banking Units, Business Correspondent model, doorstep banking, and information reporting. It also defines key terms like 'Banking Outlet' and 'Administrative Office' uniformly.
What it means for you
Banks must review and update their board-approved policies to align with the new definitions and requirements, especially around banking outlets, DBUs, and BC engagement. The consolidated framework reduces ambiguity but demands stricter compliance on reporting and customer service standards. Foreign banks have additional specific provisions (paragraphs 28-39) they must follow.
What you must do
- Review and update board-approved branch authorisation policy to comply with the 2025 Directions.
- Ensure all banking outlets meet the new definition: manned, minimum 4 hours/day, 5 days/week, uniform signage, and complaint escalation details.
- Align Digital Banking Unit operations with Chapter IV requirements on infrastructure, cyber security, and customer education.
- Update information reporting systems to capture all banking outlets, DBUs, and customer service points as per Chapter VII.
- For foreign banks, ensure compliance with paragraphs 28-39 specifically applicable to them.
Who it affects
All commercial banks (excluding SFBs, Payment Banks, LABs), Foreign banks operating in branch mode, Board of Directors of banks, Compliance and branch operations teams, Digital Banking Unit managers
What is the effective date of these Directions?
The Directions came into force with immediate effect from the date of issuance, which is November 28, 2025.