New Delhi: RBI's Latest Move to Safeguard Digital Banking

The Reserve Bank of India (RBI) has unveiled draft 'Digital Banking Channels Authorisation Directions, 2025', proposing significant changes to how banks operate on digital platforms. Among the key proposals is a ban on banks promoting third-party products, including those from promoter groups and subsidiaries, unless explicitly permitted by the RBI.

Enhanced Risk Management and Customer Protection

Under the new draft norms, banks are required to implement robust, risk-based transaction monitoring systems. These systems must track customer transaction patterns, flag unusual activities, and, in certain cases, seek prior customer confirmation for transactions that deviate from the norm, aligning with fraud risk management policies.

Ensuring Accessibility and Independence

The draft also emphasizes the importance of network independence, mandating that mobile banking services be accessible across all mobile network operators. Furthermore, banks cannot compel customers to enroll in digital banking services to access other facilities, ensuring that the choice remains solely with the customer.

Seeking RBI Approval for New Services

Banks looking to launch transactional digital banking services must first obtain RBI approval, supported by a board resolution and proof of net worth. The draft aims to enhance customer protection, improve risk management, and prevent the misuse of digital platforms for unrelated marketing.