How New Digital Banking Rules Redefine Customer Conduct Requirements For Banks

The Reserve Bank of India’s (RBI’s) recent Digital Banking Channels Authorisation Directions, 2025, issued on November 28, 2025, has certain directions specifically pertaining to customer consent in digital banking. According to the directives, no digital services can be activated without explicit recorded consent from customers. Alerts through SMS or e-mail can be sent to the customer’s registered contact details for both financial and non-financial actions in the account.

This would eliminate the possibility of digital services being turned on without due acknowledgment, while also providing a standardised approach toward documenting customer consent.

Smarter Registration and Access to Information

Banks are required to offer multiple channels to enrol and reduce the need for physical visits to the branch. Terms and conditions have to be expressed in simple words in English, Hindi, and the local language. These also need to spell out applicable charges, the procedure for stop payment instructions, grievance contact details, and the responsibility of the customer while using the digital channels.

The customers will receive full details at the time of opting-in into a service, instead of depending on clarification later.

No Mandatory Digital Linking for Other Services

The guidelines stipulate that no bank can make digital banking enrolment compulsory to avail of any other facility, such as debit cards. It has to be left at the discretion of the customers to opt for these digital services.

Banks may also continue to collect mobile numbers for alerts and know your customer (KYC) requirements, but this is different from enrolment into digital banking.

Stronger Risk Controls and Monitoring

Banks will have internal transaction limits in place considering their risk-based approach, which would include but would not be limited to per transaction, daily, weekly, and monthly ceilings. Similarly, fraud checks, velocity limits, and other filters will form part of the system.

Where the external operators, such as the National Payments Corporation of India (NPCI) or card networks follow stricter rules, stricter standards will apply. Banks will also have to comply with the directions issued under the Payment and Settlement Systems Act, 2007.

The guidelines call for a risk-based transaction monitoring mechanism where banks should study customer behavioural patterns, identify unusual activity, and wherever necessary, seek confirmation from customers for transactions that appear inconsistent with their established usage patterns.

Equal Access and Network Independence

Banks that offer mobile banking services beyond mobile applications must guarantee that all customers using different mobile network operators can access the service. This is to avoid any issue that can affect the customer based on the service provider.

Limits to Digital Cross Selling

Banks are not allowed to display third-party products, including those of promoter groups or group entities on digital banking channels, except when explicitly permitted under the relevant guidelines. The provision refers to conditions described in the master direction on financial services and earlier circulars related to digital banking units and branch authorisation. 

It also limits what the customer can access on digital platforms and maintains the focus on core banking functions. 

The Digital Banking Channels Authorisation Directions, 2025 outline the basic customer conduct requirements with respect to digital banking. The provisions address consent, communication, accessibility, monitoring, and product display in setting up a unified basis of operation for banks, and a set of expectations for customers in the use of digital channels.