What changed
RBI consolidated and updated the framework for Payments Banks offering financial services, replacing previous versions. The directions formally define 'Agency Business' and 'Financial Services Company' with expanded scope. They also outline board responsibilities and application procedures for new activities.
What it means for you
Payments Banks now have a single, clear regulatory reference for offering financial products like insurance and mutual funds as agents. The expanded definition of 'Financial Services Company' may require banks to reassess partnerships and compliance. Banks must ensure board-level oversight and follow the prescribed application process for new services.
What you must do
- Review and align your agency business and referral service agreements with the new definitions and requirements.
- Ensure board approval and oversight for all financial services activities under the directions.
- Submit applications for any new financial services as per the procedure in Chapter III.
- Update internal policies to reflect the expanded scope of 'Financial Services Company'.
Who it affects
Payments Banks, Third-party product or service providers (TPPSPs) partnering with Payments Banks, RBI supervision teams monitoring Payments Banks
Do these directions apply to all Payments Banks immediately?
Yes, the directions came into force with immediate effect on the date of issuance (November 28, 2025), and apply to all Payments Banks. They replace earlier versions and provide a consolidated framework.