Reserve Bank of India (Payments Banks – Responsible Business Conduct) Directions, 2025 (Updated as on April 1, 2026)
UR
- Applies toPayments banks
- StatusIn force
- RBI text changedRBI updated this document on October 1, 2026. BankPulse is re-reading it. BankPulse checked 65 points against RBI's new text on 2 October 2026. 49 stand. 16 are marked below and are being re-read.
- IssuedNov 28, 2025
- Last amendedJun 24, 2026 · 3 incorporated
- Length65 points in 5 sections · 6 min read
The four dates on this rule
- PublishedNov 28, 2025The day RBI put this document out. This is the same day as the Issued date on this rule.
- Starts to applyNov 28, 2025The day this rule starts to apply, as RBI's own text states it.
- Time to get readyNoneIt starts to apply on the day it was published.
- 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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60 of the 65 points name no product and bind every product. All products.
Numbers to remember
| six months | A memorandum reviewing customer service must go to the Board once every six months. RBI Para 15 |
| seven working days | If a customer reports later than seven working days, the bank's own policy decides liability. RBI Para 26 |
| 30 days | Any change in service charges needs prior notice to customers of at least 30 days. RBI Para 39(2) |
| three working days | A request to reactivate a dormant account must be settled within three working days. RBI Para 144 |
What it says
How firm is each point
Stated by RBI — RBI’s own paragraph says this. We have only made it plainer.
Our reading — BankPulse read RBI’s paragraph and shortened it. The paragraph is the authority, not this line.
Needs judgement — RBI leaves this to the bank to settle, so nobody can give you a fixed number here.
Chapter I. Preliminary
1. Conduct for payments banks
This document sets how payments banks must treat their customers.
2. Who is covered
These Directions apply to every payments bank.
Chapter II. Institutional Framework
Must know
1. Memorandum every six months
A memorandum reviewing customer service must go to the Board once every six months.
BankPulse example. A payments bank places its customer service memorandum before the Board in March. The rule is once in every six months. So the next one is due by September.
Do it
2. Board approves conduct policy
The bank must have approved policies and review them regularly to keep business conduct sound.
3. Board owns customer service
Customer service must be discussed by the Board so the rules are truly followed.
4. Service ranks with profit
Customer service must rank alongside profit and growth as a stated goal.
5. Policy on depositor rights
The bank must write a clear policy setting out the rights of depositors, small ones included.
6. Board approves deposit policy
The Board must approve a policy covering deposit accounts and the charges on them.
7. Compensation policy needed
The Board must approve a customer compensation policy covering wrong debits and other losses.
8. Publish the policies
These policies must be placed on the website and displayed on the branch notice board.
9. Customer service committee
The Board must set up a Customer Service Committee with experts and customers as invitees.
10. Fix service gaps quickly
Where service quality or skill gaps appear, action must be taken at once.
11. Standing committee chair
The standing committee on customer service must be chaired by the CMD, CEO or ED.
Background
12. Board answers for service
Hassle-free service to the common person is a major responsibility of the Board.
Chapter III. Customer Guidance and Protection
Must know
1. Seven days changes the rule
If a customer reports later than seven working days, the bank's own policy decides liability.
2. Thirty days notice needed
Any change in service charges needs prior notice to customers of at least 30 days.
3. Exit free of cost
A customer who does not accept the change may leave within those 30 days without cost.
4. Thirty days of changes shown
Changes in service charges over the past 30 days must be on display.
Do it
5. Rates shown on the website
Interest rates and service charges must be shown on the website in the set format.
6. SMS alerts are compulsory
Customers must be made to register for SMS alerts on electronic banking transactions.
7. Alerts must be sent
Message alerts must be sent. Email alerts may be sent where the customer registered.
8. Report loss any time
The bank must give customers 24x7 access through many channels to report an unauthorised transaction.
9. Stop further loss
On a report of an unauthorised transaction the bank must at once stop further such debits.
10. Money back with old date
The refund must be dated back to the day of the unauthorised transaction.
11. Bank must prove liability
The burden of proving that the customer is liable rests on the bank.
12. Report liability cases upward
Customer liability cases must be reported to the Board or one of its committees.
13. Internal audit reviews cases
All unauthorised transaction cases must be reviewed by the bank's internal auditors.
14. Board approves service charges
Service charges must be worked out with prior approval of the Board.
15. Charges must be reasonable
Service charges must be reasonable and near the average cost of the service.
16. Basic services priced low
Basic banking services must be offered at reasonable charges and outside any bundled product.
17. Cap on value-based charges
A charge based on value may only cover extra cost, and it must have a ceiling.
18. Charges told upfront
Full information on charges for basic services must be given upfront and in time.
19. Warning before a rise
Customers must be told in advance before service charges change.
20. Display service charges
Service charges must be displayed on the branch notice board as well as the website.
21. Tell customers everything
The bank must disclose full information on its products so customers can judge their choice.
22. Same price everywhere
Pricing must be uniform and fair, with no difference between home and other branches.
23. Charge actual SMS use
SMS alert charges must be levied on customers on the basis of actual usage.
Background
24. No mobile, no online use
A customer who gives no mobile number gets no electronic transactions beyond ATM cash.
25. Loss after reporting
Any loss after the customer reports the fraud is borne by the bank.
26. Charges only with reason
For a basic service to a person, a charge may be levied only if it is just and reasoned.
Chapter IV. Financial Inclusion and Accessibility
Do it
1. Basic account for all
Every bank must offer a basic savings bank deposit account as a normal banking service.
2. Court order to follow
The lender must take steps to comply with the Supreme Court order of 30 April 2025.
Background
3. Basic account is free
A basic savings account carries the listed facilities free, with no minimum balance.
4. Cheque book of 25 leaves
A basic savings account gets a cheque book of at least 25 leaves a year.
5. No charge for new passbook
Issuing a continuation passbook when the old one is full carries no charge.
6. Four free withdrawals
A basic savings account gets at least four free withdrawals in a month.
Chapter V. Payment and Remittance Services
1. Counter over drop-box
A customer cannot be forced to use the cheque drop box instead of the counter.
2. National calendar accepted
A cheque dated by the National Saka calendar must be accepted if otherwise in order.
3. Notice on the drop-box
The drop box must carry a notice that cheques may also be given at the counter.
4. Policy for repeat dishonour
The Board must approve a policy for cheques that are dishonoured again and again.
5. Cheques in any language
Cheque forms are printed in Hindi and English.
Chapter VI. Deposit Accounts and Other Liabilities
Must know
1. Minor accounts stay in credit
An account of a minor must never be allowed to go into overdraft.
2. Three days to reactivate
A request to reactivate a dormant account must be settled within three working days.
Do it
3. Deposit cover shown
The passbook must carry the deposit insurance cover and its limit.
4. Warn minors before eighteen
A minor account holder must be told in advance what is needed on turning eighteen.
5. Nothing illegal in lockers
The locker agreement must bar keeping anything illegal or dangerous inside.
6. Waiting list for lockers
If no locker is free, the application must be acknowledged and given a waiting number.
7. Board approves locker agreement
The locker agreement itself must be approved by the Board.
Chapter VII. Repeal and Other Provisions
Background
1. Older rules repealed
This document repeals RBI's earlier instructions on responsible business conduct for payments banks.
2. Earlier repeals stand
Guidelines already repealed before these Directions stay repealed.
3. Old rules stay repealed
Rules repealed before this document was issued remain repealed.
4. Old actions preserved
Anything already done under the old rules stays governed by those old rules.
5. Approvals carried over
Approvals given under the cancelled rules are now treated as given under these rules.
6. Other laws still apply
These Directions add to other laws. They do not replace any of them.
7. RBI's reading final
RBI's interpretation of any part of these Directions is final and binding.
How this rule has changed
The points above are the rule as it stands today, after every change listed here.
Issued on Nov 28, 2025. This is the date RBI put the rule out.
Changed on Dec 04, 2025. Takes effect From April 1, 2026. Exceptions and conditions are stated in the amendment..
- Encouraged early adoption. Each payments bank should put these new rules in place as soon as it can.
- Directions start date. These rules apply from April 1, 2026 or earlier if a payments bank adopts them sooner.
- Must offer BSBD. Every payments bank must offer a Basic Savings Bank Deposit account as a normal service to all customers.
- Free BSBD facilities. Payments banks must give listed basic BSBD facilities free, with no minimum balance condition.
Changed on Jun 15, 2026.
- Start date. These rules apply from January 1, 2027.
- Staff qualification. Staff and sub-agents selling products must hold any qualification or certificate that the financial regulator has set.
Changed on Jun 24, 2026.
- When it applies. These rules apply only to customer electronic banking deals on or after January 1, 2027.
- Customer protection policy. Each payments bank must frame a clear policy on customer protection in electronic banking transactions.
- Policy on website. The customer protection policy must be fair, clear, and shown on the payments bank website with complaint escalation details.
- Secure systems. Payments banks must set up proper systems and processes to keep customer electronic banking transactions safe and secure.
The same subject for other kinds of institution
The same subject for other kinds of institution.
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RBI customer service and fair conduct rules for small finance banks
RBI customer service and fair conduct rules for urban co-operative banks
Other RBI rules for payments banks
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