Reserve Bank of India (Payments Banks – Branch Authorisation) Directions, 2025

1. What counts as an outlet

A banking outlet serves customers at a fixed point for at least four hours a day, five days a week.

2. In force at once

These directions came into force with immediate effect.

3. Who is covered

These Directions apply to payments banks.

4. Machines are not outlets

ATMs, e-lobbies, cash machines and mobile branches do not count as banking outlets.

1. Targets match the mission

Internal targets must fit the bank's purpose: serving migrant workers, low income households and small businesses.

1. A quarter for rural centres

At least 25 percent of outlets opened in a year must be in rural centres.

2. Part time counts pro rata

A part time outlet counts in the 25 percent sum in proportion to its hours.

3. Extra credit carried forward

Outlets opened beyond the requirement carry forward as credit for the next two years.

4. Moves go down, not up

Outlets may shift only within the same or a smaller population category, never upward.

5. Customers told in time

Customers of an outlet being merged, closed or shifted must be informed well in time.

6. No customers in back offices

Back offices must have no direct interface with customers.

7. Ask RBI first, always

Every banking outlet needs RBI's prior authorisation — there is no general permission for payments banks.

8. Rural closures need consent

Closing, merging or moving a rural or sole semi urban outlet needs the district committee's approval.

9. Offices need approval too

Administrative offices, back offices and call centres all need RBI's prior approval.

10. ATMs anywhere

The bank may set up ATMs at places it chooses; they are not banking outlets.

1. Agents charge nothing

An agent may never charge the customer directly. Only the bank may levy open, stated charges.

2. No internet, no deal

Correspondents cannot do offline transactions; without internet connectivity, no transaction happens.

3. Thirty days, then Ombudsman

A complainant unanswered for 30 days, or unsatisfied, may approach the RBI Ombudsman.

BankPulse example. A complaint reaches the bank on 1 September. If no reply has come by 1 October, that is 30 days. The complainant may then go to the RBI Ombudsman.

4. Agents extend the bank

The bank may serve customers through business facilitators and correspondents for wider inclusion.

5. Check the agent first

Before taking on an agent, the bank looks at their name, money strength, management and skill with cash.

6. The bank answers for agents

The bank is fully responsible for the actions of its correspondents and their outlets.

7. A fixed help point

A bank employee sits at a known fixed district location to hear grievances and supervise agents.

8. The help point counts

That fixed location may do banking business and counts as a physical access point for the rural norm.

9. Introduced to the village

Bank officials introduce the agent to the public in a meeting with village elders, so nobody is impersonated.

1. No cash by phone

Cash cannot be sent out on a phone request alone.

2. Agents taught to spot fakes

The bank must teach its agents to detect forged and mutilated notes, to avoid frauds and disputes.

3. Doorstep banking allowed

The bank may offer doorstep services with board approval, managing the risks and cash limits.

4. Same day or next

Cash collected at the doorstep is credited the same day or the next working day.

1. Reported within a week

Opening, closing, merging or shifting any outlet is reported through the CISBI portal within one week.

1. Old guidance repealed

The earlier branch authorisation guidance for payments banks stands repealed.

2. Old actions stay governed

Action already taken under the old rules stays governed by them.