NEW DELHI: The Reserve Bank of India (RBI) has proposed a ban on displaying third-party products and services, including those from promoter groups and subsidiaries, on banks' digital banking platforms . Issuing its draft ‘Digital Banking Channels Authorisation Directions, 2025’ on Monday, RBI said such displays will only be allowed if specifically permitted by the regulator.
Risk-based monitoring mandatory
According to the draft norms, banks will be required to implement risk-based transaction monitoring and surveillance mechanisms. They must track customer transaction patterns, flag unusual transactions, and, where necessary, seek prior customer confirmation for outlier transactions in line with their fraud risk management policies.
RBI has invited feedback from stakeholders on the draft guidelines until August 11.
Digital channels should be network independent
The draft also mandates that mobile banking services offered by banks should be accessible across mobile network operators, ensuring network independence for customers.
Additionally, banks cannot make digital banking enrollment mandatory for availing other facilities, like debit cards. “The choice to apply for digital banking facilities shall lie solely with the customer,” the draft said, adding that explicit customer consent must be recorded for providing such services.
RBI approval needed for transactional banking facilities
Banks seeking to launch transactional digital banking services must obtain prior RBI approval. Applications must be supported by a board resolution and proof of net worth, which must meet the higher of either the minimum regulatory requirement or Rs 50 crore, as on March 31 of the previous financial year.
Banks using Core Banking Solutions (CBS) and capable of handling IPv6 internet traffic will be allowed to offer view-only digital banking services.
The proposed rules aim to enhance customer protection, improve risk management, and prevent misuse of digital platforms for marketing unrelated third-party products.
Risk-based monitoring mandatory
According to the draft norms, banks will be required to implement risk-based transaction monitoring and surveillance mechanisms. They must track customer transaction patterns, flag unusual transactions, and, where necessary, seek prior customer confirmation for outlier transactions in line with their fraud risk management policies.
RBI has invited feedback from stakeholders on the draft guidelines until August 11.
Digital channels should be network independent
The draft also mandates that mobile banking services offered by banks should be accessible across mobile network operators, ensuring network independence for customers.
Additionally, banks cannot make digital banking enrollment mandatory for availing other facilities, like debit cards. “The choice to apply for digital banking facilities shall lie solely with the customer,” the draft said, adding that explicit customer consent must be recorded for providing such services.
RBI approval needed for transactional banking facilities
Banks seeking to launch transactional digital banking services must obtain prior RBI approval. Applications must be supported by a board resolution and proof of net worth, which must meet the higher of either the minimum regulatory requirement or Rs 50 crore, as on March 31 of the previous financial year.
Banks using Core Banking Solutions (CBS) and capable of handling IPv6 internet traffic will be allowed to offer view-only digital banking services.
The proposed rules aim to enhance customer protection, improve risk management, and prevent misuse of digital platforms for marketing unrelated third-party products.
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