The Reserve Bank of India (RBI) on November 28, 2025, released the Reserve Bank of India (Payments Banks – Branch Authorisation) Directions, 2025 for public comments. Issued under Sections 23 and 35A of the Banking Regulation Act, 1949, these directions aim to establish a uniform regulatory framework governing the opening, operation, and supervision of Banking Outlets by Payments Banks (PBs). The seeks to ensure efficient service delivery, enhance financial inclusion, and maintain effective oversight of branch operations, especially in unbanked and underserved rural areas.
The directions mandate Payments Banks to formulate Board-approved policies covering branch opening, relocation, and closure; operation of mobile branches and ATMs; engagement of Business Correspondents (BCs) and Business Facilitators (BFs); and implementation of Doorstep Banking services. The Board is tasked with monitoring outlet performance, setting financial inclusion targets, ensuring uninterrupted service, and conducting periodic reviews of transactions, data submission, and grievance redressal. The defines key operational terms such as Banking Outlet, Administrative Office, and Unbanked Rural Centre (URC), providing clarity on the regulatory treatment of physical and digital service points.
Further, the framework prescribes detailed norms for Business Correspondent engagement, emphasizing progressive reduction of prefunding, fair remuneration, and strong oversight mechanisms. It also introduces clear standards for Doorstep Banking—including eligibility, delivery modalities, transparency, and risk management—to improve accessibility for migrant workers, low-income households, and small enterprises. These directions collectively aim to reinforce Payments Banks’ role in deepening financial inclusion through well-regulated, technology-enabled service channels.
These Directions shall come into force with immediate effect.
[Notification No. RBI/DOR/2025-26/207 DOR.LIC.REC.No.126/22-01-001/2025-26]
