The Reserve Bank of India (RBI) has announced new guidelines for offering banking services through digital channels, effective January 1, 2026.
These rules aim to strengthen customer protection, improve transparency, and ensure safer digital banking experiences.
Banks will face tighter approval processes, stricter compliance requirements, and enhanced grievance redressal standards.
Why New Digital Banking Rules Were Needed
The guidelines were introduced after complaints that banks were forcing customers to download mobile apps to access internet banking or activate cards.
The RBI wants to protect customer choice, prevent the bundling of services, and improve overall banking experience.
Digital banking channels include internet banking, mobile banking, and other electronic platforms.
They cover both:
Transactional services like fund transfers and loans
View-only services like balance checks and statement downloads
Who Will the Rules Apply To?
The new rules primarily apply to banks, not NBFCs or fintech companies.
However, if a bank outsources services to a fintech or third party, those services must comply with RBI regulations.
Banks with a Core Banking Solution (CBS) and IT systems supporting IPv6 traffic can offer view-only services freely.
But launching transactional digital banking will require prior RBI approval.
Banks must also demonstrate strong financial and technical capability, cybersecurity compliance, and robust internal controls.
Key Rules for Banks
Customer consent is mandatory for registration or cancellation of digital banking services
Third-party products cannot be displayed unless explicitly allowed
SMS or email alerts must be sent for all transactions
When multiple rules apply, the stricter regulation will take precedence
How the Rules Benefit Customers
Customers cannot be forced to use digital channels for other banking services
Banks cannot bundle services; customers can pick their preferred digital services
Terms and conditions must be clear and easy to understand, including fees, helpdesk info, and complaint procedures
These measures are expected to make digital banking safer, more transparent, and user-friendly, giving customers greater control over how they access and use banking services.
