Banks must meet eligibility criteria including full CBS implementation, IPv6 readiness, a net worth of at least ₹50 crore, and adequate technical and financial capacity.
The choice to apply for digital banking facilities will lie solely with the customer, according to the RBI’s Draft Directions on Digital Banking Channels Authorisation, 2025.
The central bank emphasised that Banks cannot make it mandatory for customers to opt for any digital banking channel to avail of any other facility, such as debit cards.
“While it may be more convenient for the customer to opt for some services together (for example, virtual access to card controls), the choice to apply for digital banking facilities shall lie solely with the customer,” per the Draft Directions.
The central bank underscored that Banks shall obtain explicit consent from the customer for providing digital banking services, which may be duly recorded/documented.
It shall also be clearly indicated that SMS/email alerts will be sent to the mobile number/email of the customer registered with the bank for operations, both financial and non-financial, in their account(s).
Banks may provide multiple channels for registration of digital banking services to minimise the need for branch visits and application processing time.
For registration, banks must provide the terms and conditions in clear and simple language (preferably in English, Hindi, and the local language) that is easily comprehensible to the customer.
They should provide details of charges (if any) to be levied under specific circumstances, as well as the timeframe and process to initiate stop-payment instructions. Additionally, they should include helpdesk details, grievance redressal, and information on the risks, responsibilities, and liabilities of customers.
Banks need to comply with guidelines on customer protection, including limiting liability in unauthorised electronic banking transactions, sending alerts (through SMS, email, etc.), and ensuring that the terms and conditions provided to customers are compliant with the instructions.
“Banks shall put in place a risk-based transaction monitoring and surveillance mechanism. Study of customer transaction behaviour pattern and monitoring unusual transactions or obtaining prior confirmation from customers for outlier transactions may be incorporated in the systems in accordance with the Fraud Risk Management Policy of the bank,” per the Draft Directions.
Transactional & view-only banking facility
RBI said Banks shall require its prior approval for launching a transactional banking facility.
Furthermore, all banks that have implemented a Core Banking Solution (CBS) and have enabled their public-facing Information Technology (IT) infrastructure to handle Internet Protocol Version 6 (IPv6) traffic are eligible to provide a view-only banking facility for internet banking, mobile banking, and other digital banking channel-based services.
The eligibility criteria for providing transactional banking facilities include the full implementation of CBS and public-facing IT infrastructure being enabled to handle Internet Protocol Version 6 (IPv6) traffic, as well as compliance with the minimum regulatory CRAR (capital to risk-weighted assets ratio) requirement.
The other criteria for providing a transactional banking facility include a net worth of at least ₹50 crore, as per the minimum regulatory requirement, as of March 31 of the immediately preceding financial year, and the availability of adequate financial and technical capabilities for this facility.
The applicant bank shall submit a detailed report indicating the expected expenditure (on set-up, maintenance, and upgradation) along with the availability of funds for the proposed (transactional banking) facility over the next five financial years.
Further, the report shall also include details of the cost-benefit analysis, third-party technology service providers (if any), the proposed technology to be adopted, and the availability of skilled personnel to manage the operations / oversee the outsourcing partners’ operations.
The RBI has invited comments on the draft Directions from the public/stakeholders till August 11, 2025.
Published on July 22, 2025