The RBI has amended several rules related to digital banking. New guidelines have also been issued. Banks will now be burdened less. Customers will benefit. Security and transparency will increase. Let’s find out what will change.
Add informalnewz.com as a Preferred Source
Banking System Change: The banking system is about to undergo a major transformation. The Reserve Bank of India (RBI) has issued seven guidelines related to digital banking. 244 Master Directions have been consolidated into one single guideline, which all commercial and cooperative banks will be required to comply with. The new rules will come into effect from January 1, 2026. Banks will be required to obtain customer consent, product display, and legal obligations on their digital platforms. This decision by the RBI will benefit customers and enhance security in digital transactions.
According to the notification issued by the RBI, banks will obtain clear consent from customers to offer digital banking services, which can be properly documented. It will also be clearly stated that SMS or email alerts will be sent to the customer’s mobile number or email address registered for both financial and non-financial transaction options in their bank account.
Customers will benefit, learn how?
Multiple channels can be provided for registration for these services to minimize branch overhead and application processing time. Banks should provide terms and conditions for registration in clear and simple language. Hindi, English, and local languages can also be used, so that customers can easily understand the rules. Information regarding charges, details, instructions for stopping payments, timeframes, complaint resolution, and customer risks, responsibilities, and liabilities should also be included.
Banks must also comply with these guidelines:
- Banks offering mobile banking services must ensure that customers benefit from all mobile network operators.
- All banks must also adhere to guidelines on customer protection. Banks will not mandate the use of any digital banking channel to avail of any other facility, such as a debit card.
- The choice to apply for digital banking facilities will be entirely up to the customer. However, banks may continue to collect or record customer mobile numbers for sending transaction alerts and other purposes as required by KYC requirements when opening an account.
- Banks may adopt appropriate risk mitigation measures as per their policies. NANCOs must strictly adhere to the guidelines issued by the DPSS under the Payment and Settlement Systems Act 2007, as may be updated from time to time.
- Third-party products or services, including those of promoter group entities, will not be offered on banks’ digital banking channels.
- Banks will also establish risk-based transaction monitoring and surveillance systems. They will study customer transaction behavior patterns and monitor routine transactions. They will also seek prior confirmation from customers for similar transactions.
