The Reserve Bank of India (RBI) on November 28, 2025 issued the Reserve Bank of India (Payments Banks – Responsible Business Conduct) Directions, 2025, consolidating regulatory guidelines on customer service, conduct, and fair practices for Payments Banks. The Directions apply to all Payments Banks and cover institutional framework, customer guidance, financial inclusion, payments and clearing services, and deposit accounts. Banks are required to have Board-approved policies for customer service, liability management, charges, safe deposit lockers, doorstep banking for vulnerable customers, and periodic review mechanisms to ensure responsible business conduct.
The Directions emphasize transparency and protection of customers by mandating disclosure of interest rates and service charges, public awareness against dubious schemes, and customer education on safe banking practices. Banks are required to implement robust systems for electronic banking security, fraud detection, risk assessment, and mitigation measures. Customers must be provided multiple channels for reporting unauthorized transactions, including 24x7 access via SMS, email, IVR, website, and toll-free helplines, with immediate acknowledgment and complaint tracking.
The framework also specifies limited liability provisions for customers in case of unauthorized electronic transactions. Customers are entitled to zero liability if losses arise due to contributory fraud, negligence, or deficiency on the part of the bank, irrespective of the timing of reporting. The Directions also cover operational procedures for inoperative accounts, unclaimed deposits, and financial transactions, aiming to strengthen customer trust, financial inclusion, and responsible business conduct.
These Directions shall come into force with immediate effect.
[Notification No. RBI/DOR/2025-26/219 DOR.MCS.REC.No.138/ 01-01-034/2025-26 ]
