RBI releases Draft Master Direction on ‘Digital Banking Channels Authorisation’: invites Comments from Public and Stakeholders [Read Order]

The draft directions are applicable to all authorised banks operating in India, including both commercial and cooperative banks.

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The proposed framework classifies digital banking facilities into two broad categories: View Only Banking Facility and Transactional Banking Facility. While the former permits non-financial services such as account statements and balance enquiries, the latter includes full-fledged fund-based and non-fund-based banking services that are accessible via digital methods.

The draft states that banks offering view-only services must have implemented Core Banking Solutions (CBS) and must ensure the compatibility of their Information technology (IT) infrastructure with IPv6 traffic.

Banks that intend to provide transactional banking services are required to obtain prior approval from the RBI. The approval from RBI is based on a number of criteria including financial soundness, technological readiness, a satisfactory compliance track record and cyber-security controls along with a Gap Assessment and Internal Controls Adequacy (GAICA) report that is validated by a CERT-In empanelled auditor(s).

Banks shall implement internal controls based on risk, ensure that customer consent is obtained explicitly and also provide terms and conditions of digital services in multiple languages.

Compliance with the provisions of the Information Technology Act, 2000, the Digital Personal Data Protection Act, 2023, FEMA, and relevant RBI instructions are a must. Use of digital banking channels for forced cross-selling or bundling of products is not permitted unless expressly allowed.

In addition to strengthening technological and consumer protection frameworks, the draft Master Direction seeks to streamline existing regulations. It proposes the repeal of 16 legacy circulars and guidelines on internet and mobile banking issued between 2001 and 2022.

Comments on the draft can be submitted via the RBI’s Connect 2 Regulate platform: https://www.rbi.org.in/Scripts/Bs_Connect2Regulate.aspx.

Stakeholders may either opt for para-wise comments, allowing feedback on each specific provision, or submit comprehensive comments in a 65,000-character field. Personal details must be filled in while submitting the feedback.

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Alternatively, suggestions can be mailed to the Chief General Manager, Registration and Authorisation Group, RBI, Mumbai, or emailed to autdor@rbi.org.in.

Comments from stakeholders and the general public have been invited until August 11, 2025, through RBI’s ‘Connect 2 Regulate’ platform.

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