The Reserve Bank of India (RBI) on November 28, 2025 issued the Reserve Bank of India (Payments Banks – Debit Cards: Issuance and Conduct) Directions, 2025, laying down comprehensive guidelines for issuance, conduct, and management of debit and co-branded cards by Payments Banks. The Directions apply to all Payments Banks and cover card issuance policies, form factors, co-branding arrangements, due diligence, outsourcing, and associated risks. Banks are required to have Board-approved policies detailing issuance procedures, discretionary blocking, grievance redressal, and compensation frameworks.
The Directions specify that debit cards can only be issued to Savings or Current Account holders, and not to cash credit or loan accounts, except for linking certain over facilities under government schemes. Co-branded cards must clearly indicate the issuing bank and the co-branding partner, with all marketing material displaying the card-issuer’s name. Card-issuers are responsible for the performance of co-branding partners, including timely delivery of benefits such as cashback or discounts, and must carry out due diligence to mitigate reputation risks.
General guidelines include transaction record-keeping, immediate notification to cardholders for lost or stolen cards, multiple channels for reporting unauthorized transactions, and periodic reviews of card operations. The Directions also emphasize secure handling of transaction data, advanced security features to prevent misuse, and adherence to the Reserve Bank’s KYC and AML requirements, ensuring cardholder protection and operational transparency.
These Directions shall come into force with immediate effect.
[Notification No. RBI/DOR/2025-26/213 DOR.AUT.REC.No.132/24-01-041/2025-26]
