The Reserve Bank of India (RBI) has introduced new regulations for digital banking services, which will take effect from January 1, 2026. These rules aim to make banking safer and more customer-friendly. Under the new guidelines:
Approval processes and compliance standards for banks will be stricter.
Customer protection will be improved.
Complaint handling procedures will be strengthened.
The RBI implemented these regulations in response to growing complaints. Many customers reported being pressured by banks to download mobile apps for internet banking or card activation. The new rules will prevent such practices and improve overall customer experience.
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Understanding Digital Banking Channels
Digital banking channels are the platforms banks use to provide services like internet banking and mobile banking. They include:
Transactional services – for example, fund transfers and loans.
Information-only services – for example, balance checks and statement downloads.
Who Do the Regulations Apply To?
The new guidelines apply only to banks. However, if a bank outsources services to fintech companies or third-party providers, it must ensure that these services also comply with the RBI’s regulations.
Approvals Needed for Digital Banking
Banks with a core banking solution (CBS) and IT infrastructure capable of handling IPv6 traffic can provide view-only services.
Prior RBI approval is required to launch transactional services.
Banks must also strengthen cybersecurity, internal controls, and technical capabilities before offering these services.
Key Rules for Banks
Banks must obtain explicit and documented customer consent before offering digital services.
Third-party products can be shown only after customer login and with specific permission.
SMS or email alerts will be mandatory for all transactions.
Regulations will be stricter in areas where both RBI and payment system operator rules apply.
Benefits for Customers
Customers will no longer be forced to use digital channels for services like debit cards. They can choose the combination of digital services that suits them best.
Banks must provide registration details and terms & conditions in simple, clear language, improving transparency and security.