What changed
RBI issued a single consolidated direction replacing multiple scattered instructions on customer service and fair conduct for Payments Banks. The direction includes detailed chapters on institutional framework, customer guidance, financial inclusion, payment services, and deposit accounts. It also provides standard forms for claims, locker inventory, and indemnity.
What it means for you
Payments Banks now have a unified compliance reference for all customer-facing conduct, reducing ambiguity. The direction mandates clear policies on bank-induced transactions, survivorship accounts, and claim settlement procedures. Banks must update their internal manuals and training to reflect these consolidated norms.
What you must do
- Review and align all customer service policies with the new consolidated direction immediately.
- Update internal manuals and staff training modules to cover the unified framework.
- Ensure claim forms and procedures match the standard annexes provided in the direction.
- Verify that definitions (e.g., bank-induced transactions, survivorship accounts) are correctly applied in systems.
Who it affects
Payments Banks, Compliance teams of Payments Banks, Customer service and operations staff of Payments Banks, Deposit and remittance product managers
Does this direction replace all earlier RBI instructions on customer service for Payments Banks?
Yes, this direction consolidates all previous regulatory instructions on customer service and conduct for Payments Banks into one document, effective November 28, 2025.
What is a 'bank induced transaction' under these directions?
It means a transaction initiated by the bank as per its policy, such as charges, fees, interest payments, penalties, or taxes. An illustrative list includes all charges levied and interest paid on savings accounts.
Are these directions applicable to all Payments Banks?
Yes, the directions apply to all Payments Banks (PBs) as defined. They cover all aspects of responsible business conduct including customer protection, financial inclusion, and deposit services.