Current · Source: Reserve Bank of India · RBI/DOR/2025-26/207 · issued 28 Nov 2025 · ~2 min read
Quick answerRBI has issued consolidated branch authorisation directions for Payments Banks, effective immediately. The framework covers banking outlet definitions, board roles, BC model guidelines, doorstep banking norms, and reporting requirements. All Payments Banks must align with these updated rules.
The rule, in the simplest words
Payments Banks must now follow a single, unified set of rules for branch and outlet authorisation, replacing older separate directions.
A banking outlet must be open for at least 4 hours a day, 5 days a week, and must be classified as a Banking Outlet, Part‑time Banking Outlet, Administrative Office, or Back Office.
All outlets must display clear signage, contact details, and a complaint escalation mechanism, and must be monitored regularly both on‑site and off‑site.
Business Correspondents and doorstep banking services must comply with the new guidelines and report required data under Chapter VI.
Boards must review and update their policies to align with these definitions and reporting obligations.
How it plays out — a real example
Rohan, a Payments Bank branch manager in Jaipur, checks that his outlet is open for the required 4 hours each weekday, displays the bank’s signage and contact number, and schedules weekly on‑site visits to monitor the business correspondent’s doorstep banking activities. He feels confident that his branch meets the new RBI rules and can quickly address any customer complaints.
What changed
RBI consolidated and updated the branch authorisation framework for Payments Banks into a single comprehensive direction. Key changes include clearer definitions for banking outlets, administrative offices, and back offices, plus detailed guidelines on doorstep banking services and business correspondent engagement. The directions also specify minimum service hours and monitoring requirements for banking outlets.
What it means for you
Payments Banks now have a unified set of rules governing branch and outlet authorisation, reducing ambiguity. The stricter definitions for banking outlets (minimum 4 hours/day, 5 days/week) and part-time outlets will impact branch classification and compliance. Banks must review their existing outlet network and BC arrangements to ensure alignment with the new definitions and reporting obligations.
What you must do
Review and update board-approved policy on branch authorisation to align with the new Directions.
Reclassify all existing service delivery points as Banking Outlets, Part-time Banking Outlets, Administrative Offices, or Back Offices per the new definitions.
Ensure all Banking Outlets display uniform signage, contact details, and complaint escalation mechanism.
Implement regular off-site and on-site monitoring for all Banking Outlets to ensure uninterrupted service and timely grievance redressal.
Update information reporting systems to capture and report branch/outlet data as per Chapter VI requirements.
Who it affects
All Payments Banks operating in India, Board of Directors of Payments Banks, Branch and operations heads of Payments Banks, Business Correspondent partners of Payments Banks, Compliance and risk management teams
❓ Common questions
What is the minimum service requirement for a Banking Outlet under the new Directions?
A Banking Outlet must provide services for at least four hours per day for a minimum of five days a week. Outlets not meeting this are classified as Part-time Banking Outlets.
Can Administrative Offices or Back Offices interact directly with customers?
No. Both Administrative Offices and Back Offices are explicitly prohibited from having direct interface with customers. They handle only internal administrative or processing functions.
When do these Directions come into effect?
The Directions came into force with immediate effect from November 28, 2025, the date of issuance.
📜 Read the original circular — full text as issued by RBI
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/DOR/2025-26/207 · issued 28 Nov 2025. The plain-English explanation above is BankPulse’s own independent summary.
Review and update board-approved policy on branch authorisation to align with the new Directions.
Update information reporting systems to capture and report branch/outlet data as per Chapter VI requirements.
⚙️ Operations
Reclassify all existing service delivery points as Banking Outlets, Part-time Banking Outlets, Administrative Offices, or Back Offices per the new definitions.
📜 Compliance
Ensure all Banking Outlets display uniform signage, contact details, and complaint escalation mechanism.
Implement regular off-site and on-site monitoring for all Banking Outlets to ensure uninterrupted service and timely grievance redressal.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Branch Manager at a bank this circular applies to (All Payments Banks operating in India, Board of Directors of Payments Banks, Branch and operations heads of Payments Banks, Business Correspondent partners of Payments Banks, Compliance and risk management teams), your first concrete step on “Payments Banks Branch Authorisation Directions 2025” is: “Review and update board-approved policy on branch authorisation to align with the new Directions.” (RBI issued this 28 Nov 2025).
Action required: Review and update board-approved policy on branch authorisation to align with the new Directions.
Action required: Reclassify all existing service delivery points as Banking Outlets, Part-time Banking Outlets, Administrative Offices, or Back Offices per the new definitions.
Action required: Ensure all Banking Outlets display uniform signage, contact details, and complaint escalation mechanism.
Action required: Implement regular off-site and on-site monitoring for all Banking Outlets to ensure uninterrupted service and timely grievance redressal.
Action required: Update information reporting systems to capture and report branch/outlet data as per Chapter VI requirements.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13102&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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