Reserve Bank of India (Urban Co-operative Banks – Digital Banking Channels Authorisation) Directions, 2025
UR
- Applies toUrban co-operative banks
- StatusIn force
- ImportanceMUST READ
- IssuedNov 28, 2025
- Amendmentsnone tracked
- Length33 points in 5 sections · 3 min read
The four dates on this rule
- PublishedNov 28, 2025The day RBI put this document out.
- Starts to applyJanuary 01, 2026The day this rule starts to apply, as RBI's own text states it.
- Time to get ready34 daysThe room between the day it was published and the day it starts to apply.
- Last date to actNot statedNo date to act by was found in this document. Other dates may sit inside single paragraphs.
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What it says
Chapter I. Preliminary
Must know
1. Starts in January
These rules take effect from January 01, 2026.
2. Who must follow this
These rules apply to every urban co-operative bank in India.
3. What view only means
Balance enquiry, balance viewing and downloading a statement.
4. What view only cannot do
No loans, no funds transfer, nothing that moves money or creates a liability.
5. Two kinds of digital banking
RBI splits it in two: a view only facility and a transactional one.
Background
6. Forms may still be offered
A view only bank may still put downloadable forms on its channel.
Chapter II. Prudential Requirements
Must know
1. View only needs no approval
Core banking and IPv6 ready systems are enough for the view only facility.
2. Money moving needs approval
The transactional facility needs RBI's approval before launch.
3. Core banking and IPv6
Core banking must be in, and public systems must handle IPv6 traffic.
4. Capital ratio must be met
The bank must meet the smallest capital ratio RBI sets for it.
5. The money test
The licence requirement, or 50 crores, whichever of the two is higher.
BankPulse example. A bank's licence asks it to hold 30 crore of net worth, and it holds 40 crore. That answers its licence. It does not answer the 50 crores this rulebook names, so the bank cannot switch on money-moving digital banking until it gets there.
6. Two clean audit years
No major adverse finding in the security audits of the last two financial years.
7. One approval covers all
Once approved, the bank may run every kind of digital channel.
Do it
8. A written policy first
The bank must have a full written policy for all its digital channels.
9. Thirty days to tell RBI
A bank switching on view only banking tells RBI within thirty days.
10. Money and skill needed
The bank must show it can pay for and staff the facility.
11. An outside auditor signs it
The gap report must be certified by a CERT-In empanelled auditor.
Chapter IV. General Guidelines
Must know
1. No forced sign up
The bank cannot make digital banking a condition for a debit card.
2. No bundling of services
Services cannot be tied together and sold as one packet.
3. The customer chooses
The choice of any digital facility rests with the customer alone.
4. Works on every network
Mobile banking outside an app must work on every mobile network.
5. The tighter rule wins
Where two rules apply, the stricter of the two is the one to follow.
6. No outside products inside
After login the bank must not show other people's products.
Do it
7. Ask the customer first
The bank must take and record the customer's clear consent to register.
8. Say that alerts will come
The customer must be told alerts will go to the registered mobile and email.
9. More ways to sign up
Registration should be possible without a branch visit.
10. Plain words, three languages
Terms should be in English, Hindi and the local language, simply written.
11. Set limits on transactions
The bank must set its own transaction limits, speed checks and fraud checks.
Background
12. Indian courts decide
Any legal dispute is settled inside India.
Chapter V. Exemptions, Repeal and Other Provisions
1. RBI can give more time
RBI may give a bank more time, or excuse it from any part of these rules.
2. Old rules stand repealed
The earlier digital banking rules for these banks are repealed.
3. Old actions still stand
Anything done under the old rules stays governed by those old rules.
4. Old approvals still count
Approvals given under the repealed rules now come under these rules.
The same subject for other kinds of institution
The same subject for other kinds of institution.
Other RBI rules for urban co-operative banks
RBI capital adequacy rules for urban co-operative banks 2025
RBI compliance officer and compliance function rules for urban co-operative banks
RBI concurrent audit rules for urban co-operative banks 2026
RBI credit bureau reporting rules for urban co-operative banks 2025
RBI credit card and debit card rules for urban co-operative banks 2025
RBI customer service and fair conduct rules for urban co-operative banks 2025
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