What changed
RBI issued the Reserve Bank of India (Commercial Banks – Digital Banking Channels Authorisation) Directions, 2025, under Section 35A of the Banking Regulation Act, 1949. These directions consolidate and replace previous circulars on digital banking authorisation, effective from January 1, 2026. They apply to commercial banks (excluding Small Finance Banks, Payment Banks, and Local Area Banks) and define digital banking channels, internet banking, mobile banking, view-only, and transactional facilities.
What it means for you
Banks must now have board-approved comprehensive policies covering all digital banking channels, addressing statutory and regulatory requirements including liquidity and operational risks. Only banks with Core Banking Solution (CBS) and IPv6-enabled public IT infrastructure are eligible to offer view-only internet banking. The directions set clear eligibility criteria and prudential norms, impacting how banks design and roll out digital banking services.
What you must do
- Review and update your bank's digital banking policy to align with the new directions by January 1, 2026.
- Ensure your Core Banking Solution (CBS) is implemented and public-facing IT infrastructure supports IPv6 for view-only internet banking eligibility.
- Classify digital banking offerings into view-only or transactional as per definitions and ensure compliance with associated restrictions.
- Prepare for the repeal of earlier circulars and transition to the consolidated framework.
Who it affects
Commercial banks (excluding Small Finance Banks, Payment Banks, and Local Area Banks), Corresponding new banks, State Bank of India, Banking companies as defined under Section 5 of the Banking Regulation Act, 1949
What is the effective date of these directions?
The directions come into effect from January 1, 2026.
Which banks are covered under these directions?
They apply to commercial banks, including corresponding new banks and State Bank of India, but exclude Small Finance Banks, Payment Banks, and Local Area Banks.
What is the eligibility for offering view-only banking facility?
Banks must have implemented Core Banking Solution (CBS) and enabled their public-facing IT infrastructure to handle Internet Protocol Version 6 (IPv6) traffic.