Reserve Bank of India (Payments Banks – Undertaking of Financial Services) Directions, 2025 (Updated as on December 05, 2025)
UR
- Applies toPayments banks
- StatusIn force
- IssuedNov 28, 2025
- Last amendedJun 15, 2026 · 2 incorporated
- Length27 points in 4 sections · 3 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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26 of the 27 points name no product and bind every product. All products.
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. In force at once
The rules took effect the day RBI issued them. There is no lead time.
2. Who must follow this
These rules apply to every payments bank.
3. What agency business means
Agency business is selling another firm's product to your customers for a fee. The bank takes no risk.
Chapter II. Role of the Board
1. Board policy for selling insurance
The board must approve the policy for selling insurance.
2. An in-house complaints route
The board must see that a complaints process is running for insurance sales.
Chapter III. General Guidelines
Must know
1. Inside the bank only
A payments bank must run a permitted business inside the bank itself.
2. No subsidiary for these services
A payments bank cannot set up a subsidiary for these services.
3. KYC rules still apply
The bank's usual KYC and money laundering rules apply here too.
4. Customer rights charter applies
The customer rights charter RBI issued applies to this business as well.
5. Other regulators apply too
SEBI, IRDAI and pension rules apply on top of RBI's own.
Do it
6. A written policy first
Each business needs a written policy. It must name the risks, how you hold them down, and the capital you set aside.
7. Anything else needs RBI first
Any other financial work needs RBI's approval first.
8. Applications go through Pravaah
Apply on the Pravaah portal. It goes to the Department of Regulation.
Chapter IV. Financial Services
Must know
1. Only products the Act permits
You may act as agent only for products the law lets the bank deal in.
2. Fees only, no risk taken
Agency work is paid by fee. The bank carries none of the risk.
3. No promised return
The customer buys units at their own risk. The bank promises no return.
4. No buying units back
You cannot buy units from the market, or from one customer to sell to another.
5. Treat the customer fairly
The bank must deal with customers fairly, honestly and openly.
6. Referrals, but not for insurance
You may refer customers for other products, but not insurance. Ask RBI first.
Do it
7. RBI approval for fund units
Get RBI's approval first, share no risk, and put none of the bank's own money in.
8. Forms go to the fund
Send a customer's buy or sell form on to the fund, its registrar or its transfer agent.
9. Customer units kept apart
Keep units held for customers apart from the bank's own.
10. Broker deposit sits elsewhere
The broker deposit must sit with another bank, not with your own.
11. Staff need the IRDAI qualification
Staff who sell insurance must hold the qualification IRDAI sets.
12. Need check before selling
Check what the customer needs before you sell a policy that invests. Pure term cover needs no check.
BankPulse example. A payments bank counter sells a pure risk term policy in the morning. It has no investment or growth component, so these directions deem it universally suitable and the sale needs no customer need assessment. In the afternoon the same counter sells a policy with an investment component. Here the bank must undertake a customer need assessment before the sale.
Chapter V. Repeal and Other Provisions
1. The old instructions are gone
Every earlier instruction to payments banks on this subject stands repealed.
2. RBI has the last word
Where a provision is unclear, RBI may clarify it and its reading is final.
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 05, 2025.
- effective date. These rules start from December 05, 2025.
- referral role limit. In referral services, a bank may only give customers information about third party financial products or services.
- no process involvement. In referral services, a bank must not take part in any process for the third party products or services.
- no bank branding. In referral services, the bank name or brand must not appear on any third party product or service document.
Changed on Jun 15, 2026.
- Start date. These directions will apply from January 01, 2027.
- No post‑sale in referral. Under referral route, banks must not do distribution, complaint handling or post-sale work for third-party products.
The same subject for other kinds of institution
The same subject for other kinds of institution.
RBI financial services business rules for all India financial institutions
RBI financial services business rules for regional rural banks
RBI financial services business rules for rural co-operative banks
RBI financial services business rules for small finance banks
RBI financial services business rules for urban co-operative banks
Other RBI rules for payments banks
RBI compliance officer and compliance function rules for payments banks 2026
RBI customer service and fair conduct rules for payments banks 2025
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