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
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.