RBI Tightens Norms on Digital Banking Channels
The Reserve Bank of India's draft norms mandate banks to restrict the display of third-party products on digital channels and implement a risk-based transaction monitoring system. Banks are also required to ensure customer consent for digital services, with stakeholders' comments welcomed until August 11.
- Country:
- India
The Reserve Bank of India (RBI) has released new draft norms for digital banking channels, underscoring the exclusion of third-party products and services from banks' digital interfaces. The guidelines, known as 'Reserve Bank of India (Digital Banking Channels Authorisation) Directions, 2025,' emphasize a risk-based transaction monitoring mechanism.
According to the draft, banks must incorporate customer transaction behavior analysis and monitor unusual transactions. This initiative aims to align with the banks' Fraud Risk Management Policy. The RBI is accepting feedback on these norms until August 11, allowing stakeholder engagement in refining the proposed regulations.
Further stipulations include preventing mandatory digital banking channel registration for availing other services, while ensuring comprehensive customer consent documentation. Banks looking to introduce new transactional facilities will require prior RBI approval, subject to prudential criteria and a minimum net worth. The norms also encourage interoperability of mobile banking services across networks.
(With inputs from agencies.)
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