The Reserve Bank of India (RBI) has released new rules for providing banking services through digital channels, effective January 1, 2026.
These guidelines aim to strengthen customer protection, compliance, and transparency, while ensuring safer digital banking experiences.
Banks will now face stricter approval processes, disclosure requirements, and grievance redressal standards.
Why the New Rules Were Needed
The guidelines come after complaints that some banks were pressuring customers to download mobile apps to access internet banking or activate cards.
The RBI wants to prevent forced bundling of services and improve the overall customer experience.
Digital banking channels include internet banking, mobile banking, and other electronic platforms.
These services cover:
Transactional services: Loans, fund transfers, etc.
View-only services: Balance checks, statement downloads, etc.
Who and How the Rules Apply
The rules primarily target banks. Although the industry requested that they apply to NBFCs and fintechs, the RBI has currently limited them to banks.
If banks outsource services to third parties or fintechs, those services must still comply with RBI regulations.
Banks with a Core Banking Solution (CBS) and IT infrastructure supporting IPv6 traffic can offer view-only services freely.
However, launching transactional services will require prior RBI approval. Banks must also demonstrate:
Strong financial and technical capability
Robust cybersecurity compliance
Effective internal controls
Key Rules for Banks
Customer consent is mandatory for registration or cancellation of digital services
Banks cannot display third-party products unless explicitly allowed
SMS or email alerts must be sent for all transactions
If multiple rules apply, the stricter regulation prevails
Benefits for Customers
Customers cannot be forced to use digital channels for other banking services
Banks cannot bundle services; users can select the digital services they prefer
Terms and conditions must be simple and clear, including fees, helpdesk info, and complaint channels
These measures are expected to make digital banking safer, more transparent, and user-friendly, giving customers better control over their banking services.
