RBI Payments Banks Responsible Business Conduct Directions 2025
Current · Source: Reserve Bank of India · RBI/DOR/2025-26/219 · issued 28 Nov 2025 · ~2 min read
Quick answerRBI consolidated all customer service and conduct rules for Payments Banks into one master direction effective November 28, 2025. It covers institutional framework, customer protection, financial inclusion, and deposit/remittance services. Banks must align policies immediately.
The rule, in the simplest words
All old scattered rules for Payments Banks are now combined into one master direction that started on Nov 28, 2025 (one big rulebook).
Payments Banks must quickly check and change their customer‑service policies, manuals and staff training to match the new direction.
Banks have to use the standard claim forms and follow the exact steps for things like fees, survivorship accounts and bank‑induced transactions.
Every system must show the correct meanings of new terms (e.g., "bank‑induced transactions" and "survivorship accounts").
How it plays out — a real example
Rohit, a payments‑bank customer service manager in Mumbai, spent his morning comparing the old policy handbook with the new RBI direction and updated the team’s training slides. He then printed the standard claim form from the annex and showed his staff how to record a fee for an ATM withdrawal exactly as the new rules require.
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
❓ Common questions
Regulatory timeline
Stated effective dateeffective November 28, 2025
Decoded by BankPulse2026-06-17 21:41 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
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.
📜 Read the original circular — full text as issued by RBI
(i) Nature of the charges – fee/ commission/ penalty etc.
(ii) Reasons for the charges, in brief – e.g. return of cheque (number), commission/ fee on draft issued/ remittance (draft number), cheque collection charge (number), issuance of cheque book, SMS alerts, ATM fees, additional cash withdrawals, etc.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/DOR/2025-26/219 · issued 28 Nov 2025. The plain-English explanation above is BankPulse’s own independent summary.
Verify that definitions (e.g., bank-induced transactions, survivorship accounts) are correctly applied in systems.
📜 Compliance
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.
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 Compliance officer at a bank this circular applies to (Payments Banks, Compliance teams of Payments Banks, Customer service and operations staff of Payments Banks, Deposit and remittance product managers), your first concrete step on “RBI Payments Banks Responsible Business Conduct Directions 2025” is: “Review and align all customer service policies with the new consolidated direction immediately.” (RBI issued this 28 Nov 2025).
Action required: Review and align all customer service policies with the new consolidated direction immediately.
Action required: Update internal manuals and staff training modules to cover the unified framework.
Action required: Ensure claim forms and procedures match the standard annexes provided in the direction.
Action required: Verify that definitions (e.g., bank-induced transactions, survivorship accounts) are correctly applied in systems.
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=13089&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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