The Reserve Bank of India (RBI) on November 28, 2025, notified Reserve Bank of India (Local Area Banks – Digital Banking Channels Authorisation) Directions, 2025.
The following has been stated: -
•RBI has issued the Local Area Banks – Digital Banking Channels Authorisation Directions, 2025, effective from January 01, 2026, applicable to all Local Area Banks.
•Banks can offer view-only digital services if they have CBS and IPv6-enabled IT systems, while transactional services require RBI’s prior approval and stricter eligibility criteria.
•Banks must follow detailed technology, cybersecurity, outsourcing, fraud-risk, and IT governance norms.
•They must obtain explicit customer consent, provide clear terms, ensure accessibility, and follow all KYC/AML, data protection, and payment system laws.
•Existing guidelines stand repealed, and RBI may provide exemptions or clarifications as needed.
The detailed notification is given in the document below.
[Notification No.: RBI/DOR/2025-26/383 DOR.RAUG.AUT.REC.306/24.01.041/2025-26]
