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RBI Digital Banking: Consent is Key
1 Dec, 2025
Summary
- Banks need explicit customer consent for digital services.
- Customers cannot be forced to use digital channels for debit cards.
- RBI imposes risk mitigation measures and transaction limits.
The Reserve Bank of India (RBI) has finalized its guidelines for digital banking channels, emphasizing customer consent and choice. Banks are now required to secure explicit permission from customers before activating any digital banking services, ensuring that essential facilities like debit cards are not exclusively tied to digital access. This move aims to provide customers with greater control over their banking interactions.
To enhance security and manage risks associated with digital transactions, the RBI has directed banks to implement robust mitigation measures. These include setting transaction limits, velocity limits, and incorporating advanced fraud detection systems. Banks must also ensure that mobile banking services, when offered outside dedicated apps, are universally accessible, irrespective of the customer's mobile network provider, promoting inclusivity.
Furthermore, the guidelines restrict the display of third-party products on digital platforms unless regulator-approved. Banks must clearly inform customers about SMS and email alerts for all account activities. In a related development, HDFC Bank was fined Rs91 million for regulatory breaches, underscoring the RBI's commitment to enforcing these financial sector standards.
