Introduction
India’s banking sector is entering a new digital era. With customers demanding faster, safer, and more convenient banking experiences, the Reserve Bank of India (RBI) has introduced a landmark framework to ensure that digital banking is secure, inclusive, and future-ready. On November 28, 2025, RBI issued the “Commercial Banks – Digital Banking Channels Authorisation Directions, 2025”, which will come into effect from January 1, 2026. These RBI directions aim to strengthen governance, enhance customer protection, and set technological benchmarks for all commercial banks.
What Are Digital Banking Channels?
Digital banking channels are platforms that allow customers to access banking services through internet banking, mobile banking, and other digital interfaces. They enable seamless transactions, real-time account management, and integration with other financial systems. RBI classifies digital banking facilities into two categories:
- View-Only Banking Facility: Provides non-financial services such as balance inquiries and account statements without altering the customer’s financial position.
- Transactional Banking Facility: Enables customers to perform financial transactions like fund transfers, bill payments, and loan applications.
Key Highlights of RBI’s Directions
1. Prudential Requirements
Banks must adopt robust policies for digital banking channels, addressing liquidity, operational, and cybersecurity risks. The eligibility criteria differ for each facility:
- View-Only Facility:
- Banks with Core Banking Solutions (CBS) and IPv6-enabled IT infrastructure can offer this service.
- A Gap Assessment and Internal Controls Adequacy (GAICA) report must be submitted to RBI within 30 days of launching the facility.
- Transactional Facility:
- Requires prior RBI approval.
- Banks must meet stringent conditions, including:
- Compliance with minimum Capital to Risk-Weighted Assets Ratio (CRAR).
- Adequate paid-up capital/net worth.
- Strong financial and technical capabilities.
- Proven track record of regulatory compliance and cybersecurity readiness.
2. Technological Standards
Banks offering digital banking services must comply with RBI’s frameworks on:
- IT Governance and Risk Management
- Digital Payment Security Controls
- Cybersecurity Framework
- Fraud Risk Management
These measures ensure robust security and resilience against cyber threats.
3. Customer-Centric Approach
The directions emphasize customer protection and transparency:
- Explicit consent for registration/deregistration of digital banking services.
- Clear terms and conditions in English, Hindi, and local languages.
- No mandatory bundling of digital services with other banking products.
- Mobile banking services must be network independent.
- Risk mitigation measures such as transaction limits and fraud checks.
Banks must also comply with KYC/AML/CFT norms, the IT Act, 2000, and the Digital Personal Data Protection Act, 2023.
4. Compliance and Legal Framework
Banks must adhere to:
- FEMA 1999 provisions
- Payment and Settlement Systems Act, 2007
- RBI’s Responsible Business Conduct Directions
- Accessibility standards for persons with disabilities
Exemptions and Repeal
RBI may grant exemptions or extensions under specific circumstances. With these directions, previous guidelines on digital banking channels stand repealed, creating a unified regulatory framework.
Why This Matters
The RBI’s 2025 Directions are a game-changer for India’s banking sector. By setting clear eligibility norms, technological benchmarks, and customer protection standards, RBI aims to foster trust, security, and innovation in digital banking. This framework will empower banks to deliver faster, safer, and more inclusive services, aligning with India’s vision of a digitally driven economy.
Conclusion
The RBI’s 2025 Directions are more than just compliance; they represent a strategic shift toward a secure and customer-first digital banking ecosystem. For banks, this is an opportunity to reimagine customer engagement, strengthen cybersecurity, and embrace innovation.