The Reserve Bank of India (RBI) on November 28, 2025, issued the Reserve Bank of India (Local Area Banks – Debit Cards: Issuance and Conduct) Directions, 2025.
The following has been stated: -
•The RBI (Local Area Banks – Debit Cards: Issuance and Conduct) Directions, 2025, mandate that Local Area Banks (LABs) issue debit cards only to Savings/Current account holders under a Board-approved policy, prohibiting unsolicited issuance.
•Key guidelines cover Co-branded Cards, requiring due diligence on partners and limiting the partner's role to marketing without customer transaction data access.
•The directions require LABs to provide Most Important Terms and Conditions (MITC) clearly (minimum font Arial-12) and establish a robust 24x7 Grievance Redressal Mechanism for card issues.
•LABs must immediately block lost/stolen cards upon intimation, provide multiple reporting channels, and ensure the confidentiality of customer data.
•The rules also cover the issuance of new payment instruments like Form Factors (e.g., wearables) and prescribe compliance with all relevant KYC/AML and outsourcing norms.
These directions shall become effective on November 28, 2025.
[Notification No.: RBI/DOR/2025-26/230 DOR.AUT.REC.No.149/ 24-01-041/2025-26]
