What changed
RBI consolidated multiple existing circulars into a single comprehensive direction for Payments Banks, effective immediately from November 28, 2025. The directions cover areas like board-approved policies, deposit acceptance, DEAF fund procedures, KYC updation camps, and prohibitions on loans and current account maintenance. It also includes provisions on FATCA compliance, CERSAI filing, and valuer empanelment.
What it means for you
Payments Banks now have a single reference document for miscellaneous regulatory requirements, reducing ambiguity. The directions reinforce existing restrictions like no lending and no current accounts for PBs, while adding clarity on compliance, taxation, and operational matters. Banks must align their board policies and internal processes with these consolidated rules.
What you must do
- Review and update board-approved policies to align with all chapters of the Directions.
- Ensure compliance with DEAF fund transfer, refund, and reporting procedures as per Chapter IV.
- Implement KYC updation camps and campaigns as per Chapter V requirements.
- Verify that no loans, advances, or current accounts are maintained, and no prohibited activities are undertaken.
- File security interests with CERSAI and empanel valuers as per Chapters X and XI.
Who it affects
Payments Banks, Board of Directors of Payments Banks, Compliance and legal teams of Payments Banks, Auditors of Payments Banks
Are these directions applicable to all Payments Banks immediately?
Yes, the directions came into force with immediate effect from November 28, 2025, and apply to all Payments Banks.
Do these directions allow Payments Banks to offer loans or current accounts?
No, the directions reiterate the existing restrictions: Payments Banks cannot grant loans or advances, and they cannot maintain current accounts as per Chapter VI.
What is the DEAF fund requirement under these directions?
Chapter IV details the Depositor Education and Awareness Fund, including credits, refunds, registration, procedural guidelines, returns, and audit requirements for Payments Banks.