What changed
RBI formalised authorisation requirements for Payments Banks to provide digital banking channels, including internet and mobile banking. The directions define view-only and transactional facilities, set eligibility criteria (CBS and IPv6), and mandate comprehensive policies covering liquidity and operational risks.
What it means for you
Payments Banks now have a clear regulatory framework to roll out digital banking services, reducing ambiguity. The view-only facility allows basic services without fund movement, while transactional banking requires full compliance. Banks must upgrade IT systems to IPv6 and notify RBI before launching new digital channels.
What you must do
- Ensure your bank has implemented Core Banking Solution (CBS) and enabled IPv6 on public-facing IT infrastructure before offering view-only digital banking.
- Draft or update comprehensive policies for all digital banking channels covering statutory, regulatory, liquidity, and operational risk requirements.
- If commencing view-only digital channels after Jan 1, 2026, intimate the Department of Regulation via the PRAVAAH portal with a copy of the policy.
- Review definitions of digital banking channels (internet, mobile, view-only, transactional) and align product offerings accordingly.
Who it affects
All Payments Banks operating in India, IT and digital banking teams of Payments Banks, Compliance and risk management departments of Payments Banks
Can a Payments Bank offer transactional banking without prior approval?
No, banks require prior approval of the Reserve Bank for launching transactional banking facility, subject to eligibility criteria as per para 7 of the Directions.
What is the view-only banking facility?
It allows banking services that do not alter the asset or liability of the customer, such as balance enquiry, balance viewing, and account statement download. Loans, funds transfers, and other such facilities are not permitted.