{"what_this_is":"The machine-readable twin of the BankPulse page for one RBI rulebook. Same points, same dates, same paragraph references as the page a person reads. RBI's own wording is not reproduced here: each point names the RBI paragraph, the character offset into the text BankPulse read and the sha256 of that text, so the claim can be checked against RBI's own document.","schema_version":1,"release_id":"d653cdb0a5","generated_at":"2026-09-15T00:33:59.117975+00:00","id":"md13627","title":"Reserve Bank of India (Payments Banks - Compliance Function) Directions, 2026","document_kind":"Directions","page":"https://bankpulse.ai/rule/md13627","status":"In force","importance":{"code":"MR","label":"MUST READ","weight":"Must read","why":"Binding RBI Directions naming this institution class in the title","layer":"bankpulse_inference"},"applies_to":{"shown":"Payments banks","class_code":"PB","from":"the document's own title","layer":"bankpulse_inference"},"dates":{"prid":"md13627","mode":"four_dates_v1","published":{"label":"Published","value":"Jul 31, 2026","stated":true,"why":"The day RBI put this document out."},"effective":{"label":"Starts to apply","value":"","stated":false,"why":"Not stated separately in this document. Read the rule itself before you assume a start date."},"transition":{"label":"Time to get ready","value":"","stated":false,"why":"Cannot be worked out until the day it starts to apply is known."},"deadline":{"label":"Last date to act","value":"","stated":false,"why":"No date to act by was found in this document. Other dates may sit inside single paragraphs."},"sources":{"published":"doc_date in data/highlights/md13627.json","effective":"none held","transition":"none held","deadline":"none held"}},"rbi_source":{"url":"https://rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=13627","document_date":"Jul 31, 2026","read_by_bankpulse":"2026-08-21 16:25:04 UTC","text_sha256":"84b0e70fca7e253b16de6f0902c62b0490439275ddc163b4ea1a72ccd06e55ad","word_count":5541,"standing_last_checked":"Standing checked on RBI’s Master Directions index, 15 September 2026, 5:58 am IST."},"counts":{"points_shown":33,"points_naming_an_rbi_paragraph":33,"points_stored":33,"actions":0,"amendments":0},"points":[{"n":1,"claim":"md13627-4bca89be","page_group":"Opening paragraphs","stored_section":"THE CORE IDEA","heading":"Why this function exists","plain_english":"Compliance is part of a bank's assurance system, beside internal audit and risk management.","rbi_paragraph":"Opening paragraphs","rbi_char_offset":2822,"weight":"BACKGROUND","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p1","layer":"bankpulse"},{"n":1,"claim":"md13627-0e747d72","page_group":"Chapter I. Preliminary","stored_section":"KEY DATES","heading":"In force at once","plain_english":"These rules came into force on the day they were issued.","rbi_paragraph":"Para 2","rbi_char_offset":3897,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p2","layer":"bankpulse"},{"n":2,"claim":"md13627-d35397b2","page_group":"Chapter I. Preliminary","stored_section":"WHO IT APPLIES TO","heading":"Who is covered","plain_english":"These rules apply to every payments bank.","rbi_paragraph":"Para 3","rbi_char_offset":3993,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p3","layer":"bankpulse"},{"n":3,"claim":"md13627-7024ab79","page_group":"Chapter I. Preliminary","stored_section":"THE CORE IDEA","heading":"What compliance risk is","plain_english":"Compliance risk is the punishment, money loss, or lost trust a bank faces for breaking the rules.","rbi_paragraph":"Para 4(1)","rbi_char_offset":4277,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p4","layer":"bankpulse"},{"n":1,"claim":"md13627-7dec1c6e","page_group":"Chapter II. Governance and Oversight","stored_section":"WHO SHOULD ACT","heading":"Policy reviewed yearly","plain_english":"The board must have a compliance policy in place and review it at least once a year.","rbi_paragraph":"Para 7","rbi_char_offset":5352,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p5","layer":"bankpulse"},{"n":2,"claim":"md13627-e47e01e8","page_group":"Chapter II. Governance and Oversight","stored_section":"WHAT CHANGES","heading":"Audit kept separate","plain_english":"Compliance and internal audit must be kept separate functions.","rbi_paragraph":"Para 10","rbi_char_offset":5901,"weight":"DO IT","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p6","layer":"bankpulse"},{"n":3,"claim":"md13627-c82bfb42","page_group":"Chapter II. Governance and Oversight","stored_section":"WHO SHOULD ACT","heading":"The chief executive's duty","plain_english":"The bank's chief must make sure the function exists, stays independent, and the policy is followed.","rbi_paragraph":"Para 11","rbi_char_offset":6088,"weight":"DO IT","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p7","layer":"bankpulse"},{"n":4,"claim":"md13627-69d8f099","page_group":"Chapter II. Governance and Oversight","stored_section":"WHO SHOULD ACT","heading":"Action on breaches","plain_english":"When rule breaks are found, management must fix them and punish where due.","rbi_paragraph":"Para 13","rbi_char_offset":6522,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p8","layer":"bankpulse"},{"n":5,"claim":"md13627-8e2c0b86","page_group":"Chapter II. Governance and Oversight","stored_section":"WHO SHOULD ACT","heading":"A yearly risk map","plain_english":"Management must identify and assess the bank's main compliance risks at least once a year.","rbi_paragraph":"Para 14(1)","rbi_char_offset":6672,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p9","layer":"bankpulse"},{"n":6,"claim":"md13627-3bc80420","page_group":"Chapter II. Governance and Oversight","stored_section":"WHO SHOULD ACT","heading":"Failures reported promptly","plain_english":"Any material compliance failure must be reported promptly to the board or its audit committee.","rbi_paragraph":"Para 14(3)","rbi_char_offset":7054,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p10","layer":"bankpulse"},{"n":7,"claim":"md13627-7d200200","page_group":"Chapter II. Governance and Oversight","stored_section":"WHO SHOULD ACT","heading":"The board owns it","plain_english":"The board answers for the compliance function and for the bank's compliance risk.","rbi_paragraph":"Para 6","rbi_char_offset":5087,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p11","layer":"bankpulse"},{"n":8,"claim":"md13627-b16209e2","page_group":"Chapter II. Governance and Oversight","stored_section":"WHO SHOULD ACT","heading":"A quarterly review","plain_english":"The board or its audit committee reviews the compliance function every quarter, with a detailed annual review.","rbi_paragraph":"Para 9","rbi_char_offset":5667,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p12","layer":"bankpulse"},{"n":1,"claim":"md13627-1ac98f0e","page_group":"Chapter III. Scope, Structure and Responsibilities","stored_section":"WHAT CHANGES","heading":"Never audit duty","plain_english":"Compliance staff may never be assigned audit or inspection duty; that is a conflict of interest.","rbi_paragraph":"Para 24","rbi_char_offset":12849,"weight":"MUST KNOW","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p13","layer":"bankpulse"},{"n":2,"claim":"md13627-bf362780","page_group":"Chapter III. Scope, Structure and Responsibilities","stored_section":"WHAT CHANGES","heading":"A head office department","plain_english":"A compliance department must be set up at the bank's head office, headed by the chief compliance officer.","rbi_paragraph":"Para 21","rbi_char_offset":11845,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p14","layer":"bankpulse"},{"n":3,"claim":"md13627-a5bdf15d","page_group":"Chapter III. Scope, Structure and Responsibilities","stored_section":"THE CORE IDEA","heading":"Codes count too","plain_english":"The function covers the law, RBI's rules, and the codes of industry bodies.","rbi_paragraph":"Para 18","rbi_char_offset":10385,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p15","layer":"bankpulse"},{"n":4,"claim":"md13627-fe6dbada","page_group":"Chapter III. Scope, Structure and Responsibilities","stored_section":"WHAT CHANGES","heading":"Every unit has one","plain_english":"Every office and branch names its own compliance official, who reports to the chief compliance officer.","rbi_paragraph":"Para 23","rbi_char_offset":12453,"weight":"BACKGROUND","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p16","layer":"bankpulse"},{"n":5,"claim":"md13627-48632b7b","page_group":"Chapter III. Scope, Structure and Responsibilities","stored_section":"WHAT CHANGES","heading":"The central role","plain_english":"The head office department identifies the compliance risk in each business line, product and process.","rbi_paragraph":"Para 30","rbi_char_offset":15345,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"Two departments disagree about how much compliance risk a new process carries. The compliance function plays the central role in identifying the level of compliance risk in the organisation. It is not one voice among several.","anchor":"https://bankpulse.ai/rule/md13627#p17","layer":"bankpulse"},{"n":6,"claim":"md13627-9461f038","page_group":"Chapter III. Scope, Structure and Responsibilities","stored_section":"WHAT CHANGES","heading":"Circulars vetted first","plain_english":"The function vets the bank's own circulars against the regulations before they go out to operating units.","rbi_paragraph":"Para 33","rbi_char_offset":16441,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p18","layer":"bankpulse"},{"n":1,"claim":"md13627-289d26be","page_group":"Chapter IV. Chief Compliance Officer","stored_section":"WHAT CHANGES","heading":"The age cap","plain_english":"The officer must not be over 55 years of age at appointment, with a continuity exception.","rbi_paragraph":"Para 58","rbi_char_offset":26505,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"A candidate aged 54 may be appointed. A candidate aged 56 may not be, because the age at appointment must not be more than 55.","anchor":"https://bankpulse.ai/rule/md13627#p19","layer":"bankpulse"},{"n":2,"claim":"md13627-7cdcc87a","page_group":"Chapter IV. Chief Compliance Officer","stored_section":"WHAT CHANGES","heading":"Fifteen years behind them","plain_english":"The officer needs 15 years of overall experience, at least five of them in control functions.","rbi_paragraph":"Para 59","rbi_char_offset":27142,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"An officer needs at least 15 years in banking or financial services. At least five of those 15 years must be in audit, finance, compliance, legal or risk. So 20 years in banking with only three years in those functions is not enough.","anchor":"https://bankpulse.ai/rule/md13627#p20","layer":"bankpulse"},{"n":3,"claim":"md13627-1d6251a9","page_group":"Chapter IV. Chief Compliance Officer","stored_section":"WHAT CHANGES","heading":"Three years minimum","plain_english":"The appointment is for a fixed tenure of not less than three years.","rbi_paragraph":"Para 61","rbi_char_offset":27910,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p21","layer":"bankpulse"},{"n":4,"claim":"md13627-1105ec81","page_group":"Chapter IV. Chief Compliance Officer","stored_section":"WHO SHOULD ACT","heading":"Tell RBI first","plain_english":"RBI must be told in advance before the officer is appointed, transferred early, or removed.","rbi_paragraph":"Para 70","rbi_char_offset":30123,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p22","layer":"bankpulse"},{"n":5,"claim":"md13627-d5ada0f5","page_group":"Chapter IV. Chief Compliance Officer","stored_section":"WHAT CHANGES","heading":"An independent chief","plain_english":"The function is headed by a chief compliance officer, who may be recruited from outside the bank.","rbi_paragraph":"Para 55","rbi_char_offset":25653,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p23","layer":"bankpulse"},{"n":6,"claim":"md13627-aef814de","page_group":"Chapter IV. Chief Compliance Officer","stored_section":"WHO SHOULD ACT","heading":"Fit and proper first","plain_english":"The officer is chosen through a defined selection process with a fit and proper evaluation; the board decides.","rbi_paragraph":"Para 56","rbi_char_offset":25822,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p24","layer":"bankpulse"},{"n":7,"claim":"md13627-eb53900b","page_group":"Chapter IV. Chief Compliance Officer","stored_section":"WHAT CHANGES","heading":"A clean record","plain_english":"No vigilance case or adverse RBI observation may be pending against the candidate.","rbi_paragraph":"Para 57","rbi_char_offset":26364,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p25","layer":"bankpulse"},{"n":8,"claim":"md13627-6cc5c63e","page_group":"Chapter IV. Chief Compliance Officer","stored_section":"WHAT CHANGES","heading":"Hard to remove","plain_english":"Moving or removing the officer early needs rare grounds and the board's clear prior approval.","rbi_paragraph":"Para 62","rbi_char_offset":28105,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p26","layer":"bankpulse"},{"n":9,"claim":"md13627-f46ad48e","page_group":"Chapter IV. Chief Compliance Officer","stored_section":"WHAT CHANGES","heading":"A senior rank","plain_english":"The officer holds senior rank, not below two levels from the chief executive.","rbi_paragraph":"Para 63","rbi_char_offset":28391,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p27","layer":"bankpulse"},{"n":10,"claim":"md13627-92ff99f0","page_group":"Chapter IV. Chief Compliance Officer","stored_section":"WHAT CHANGES","heading":"A private quarterly meeting","plain_english":"If the officer reports to the chief, the audit committee meets the officer alone every quarter.","rbi_paragraph":"Para 65","rbi_char_offset":28793,"weight":"BACKGROUND","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p28","layer":"bankpulse"},{"n":11,"claim":"md13627-6047074e","page_group":"Chapter IV. Chief Compliance Officer","stored_section":"WHAT CHANGES","heading":"No business targets","plain_english":"The officer reports to no business vertical and carries no business targets.","rbi_paragraph":"Para 66","rbi_char_offset":28988,"weight":"BACKGROUND","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p29","layer":"bankpulse"},{"n":12,"claim":"md13627-f2ec38ae","page_group":"Chapter IV. Chief Compliance Officer","stored_section":"WHAT CHANGES","heading":"One hat only","plain_english":"No dual hatting: the officer takes no role that conflicts with compliance, and sits on committees only as an adviser.","rbi_paragraph":"Para 67","rbi_char_offset":29153,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p30","layer":"bankpulse"},{"n":13,"claim":"md13627-36b3e721","page_group":"Chapter IV. Chief Compliance Officer","stored_section":"WHAT CHANGES","heading":"Reach everything","plain_english":"The officer may speak to any staff member and open any record needed for compliance work.","rbi_paragraph":"Para 69","rbi_char_offset":29876,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p31","layer":"bankpulse"},{"n":1,"claim":"md13627-99694b5b","page_group":"Chapter V. Use of Technology for Monitoring","stored_section":"WHAT CHANGES","heading":"One dashboard","plain_english":"The bank needs workflow tools that track compliance and give management one dashboard view of the whole bank.","rbi_paragraph":"Para 74(5)","rbi_char_offset":33241,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p32","layer":"bankpulse"},{"n":1,"claim":"md13627-c4bfb3c9","page_group":"Chapter VI. Repeal and Other Provisions","stored_section":"WHAT IT REPLACES","heading":"What it replaces","plain_english":"Earlier compliance function circulars for this class of bank stand repealed by these Directions.","rbi_paragraph":"Para 76","rbi_char_offset":33687,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13627#p33","layer":"bankpulse"}],"actions":[],"amendments":[],"layers":{"rbi_source":"Facts taken from RBI's own document.","bankpulse":"BankPulse's plain-English summary of RBI's document.","bankpulse_inference":"BankPulse's own inference, not stated by RBI."},"rbi_wording_not_included":"By design. BankPulse never republishes RBI's exact sentences. Use rbi_paragraph with rbi_source.url to read RBI's own words.","terms":"BankPulse's plain-English summaries are BankPulse's own work. The underlying regulation is the Reserve Bank of India's. Always check the RBI document named in rbi_source before acting."}