logo
RBI seeks to tighten norms for digital banking

RBI seeks to tighten norms for digital banking

Time of India21-07-2025
MUMBAI: In a move that could deal a setback to the cross-selling of
financial products
, the Reserve Bank of India (
RBI
) has proposed prohibiting banks from displaying third-party products and services on their
digital banking
platforms. This includes offerings from promoter groups or entities within the bank's own group.
"Third-party products and services, including those of promoter groups or bank group entities, shall not be displayed on banks' digital banking channels except as specifically permitted by the Reserve Bank from time to time," the RBI stated in its draft Digital Banking Channels Authorisation Directions, which is open for public feedback until August 11. The RBI has also stated that banks should not make it mandatory for the customer to opt for any digital banking channel to avail any other facility like
debit cards
.
Explore courses from Top Institutes in
Select a Course Category
The draft also mandates that banks must obtain explicit, documented consent from customers before offering digital banking services. Customers cannot be forced to adopt a digital banking channel to access other facilities, such as debit cards. Banks will now be required to seek prior approval from the RBI before launching any new digital banking channel for transactional purposes. Banks that already have approval for specific digital platforms, such as
mobile banking
, must obtain fresh approval to introduce any additional digital banking channels.
"Banks shall require prior approval of the Reserve Bank of India for launching transactional banking facilities," the regulator said.
Live Events
The RBI has also asked banks to formulate comprehensive policies for all digital banking channels, addressing statutory and regulatory requirements, including management of liquidity and operational risks. The responsibility for risk oversight will lie with the senior management.
The regulator said banks which have implemented core banking solution and have enabled their public facing information technology (IT) infrastructure to handle internet protocol version 6 are eligible to provide view-only banking facility for
internet banking
, mobile banking, and other digital banking channels-based services.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Punjab to raise Rs 2,500cr via 15-year stock
Punjab to raise Rs 2,500cr via 15-year stock

Time of India

time2 hours ago

  • Time of India

Punjab to raise Rs 2,500cr via 15-year stock

Chandigarh: The Punjab govt has decided to raise Rs 2,500 crore through the sale of Punjab govt stock (securities) of a 15-year tenure. The objective of the loan has been specified to finance capital expenditure of plan schemes and other development schemes currently under execution in the state. As per a notification issued by the finance department on July 25, the Centre's consent has been obtained for this loan. The govt stock will be sold through the Reserve Bank of India by auction. The stock will have a 15-year tenure, commencing on July 30, 2025. The loan will be repaid at par on July 30, 2040. The cut-off yield determined at the auction will decide the coupon rate per annum on the stock sold. Interest will be paid on Jan 30 and July 30 each year. The cash-strapped Punjab govt recently decided to avail a loan of Rs 8,500 crore during the second quarter of the present fiscal — July to Sept. During April and May, the govt availed loans of Rs 6,241.92 crore. Earlier, a report on debt-stressed states in the country, tabled in Parliament by Union minister of state for finance Pankaj Chaudhary, expressed concern on the debt-to-GSDP ratio of Punjab as it stated that it was the second highest in the country. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Real-Time Conversations in 68 Languages? AI Just Made It Possible Enence 2.0 Undo During the first two months of this fiscal year, April and May, the state's revenue deficit was Rs 5,513.65 crore, and it received Rs 12,903.04 crore in revenue receipts, while the revenue expenditure stood at Rs 18,416.69 crore. MSID:: 122957154 413 |

RBI purchases half a tonne of gold in June
RBI purchases half a tonne of gold in June

Time of India

time3 hours ago

  • Time of India

RBI purchases half a tonne of gold in June

MUMBAI: The Reserve Bank of India ( RBI ) bought nearly half a tonne of gold in the last week of June after a relatively conservative spell of bullion shopping in the current fiscal year. The RBI's outstanding stock of gold amounted to 879.8 tonnes as of June 27, up from 879.6 tonnes in the previous week. This translates into fresh purchases of 4 quintals by the central bank during the week. Explore courses from Top Institutes in Please select course: Select a Course Category MCA Cybersecurity healthcare Degree Operations Management CXO Project Management Others Data Science Public Policy Technology Design Thinking others Data Science Data Analytics PGDM Management Healthcare Product Management Artificial Intelligence Finance Leadership MBA Digital Marketing Skills you'll gain: Programming Proficiency Data Handling & Analysis Cybersecurity Awareness & Skills Artificial Intelligence & Machine Learning Duration: 24 Months Vellore Institute of Technology VIT Master of Computer Applications Starts on Aug 14, 2024 Get Details Gold has emerged as the fastest growing component of India's foreign exchange reserves in recent years, with the value of the yellow metal climbing more than 80% in the past 5 years. Its share in India's foreign exchange reserves climbed to 12.1% as of July 18, 2025, from 8.9% as of July 19, 2024. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Join new Free to Play WWII MMO War Thunder War Thunder Play Now Undo As a natural hedge against inflation, gold has found significant institutional backing lately. World Gold Council (WGC) data showed gold purchases by central banks topped 1,000 tonnes over each of the past three years, significantly higher than usual purchases. "While safety and liquidity constitute the twin objectives of reserve management in India, return optimisation is kept in view within this framework," notes the central bank's latest report of foreign exchange reserves. Live Events Although returns on gold were among the highest in India, the central bank seldom sells its gold holdings . Significantly, the last time RBI had bought gold was in the last week of March, central bank data showed. From an investment perspective with returns at 26% in the first half of this calendar year, gold has earned among the highest returns for India, showed WGC estimates. Only returns in Turkey, in excesses of 40%, were higher than in India. Gold returns in India also exceeded those in advanced market currencies such as the pound, yen and euro or even the Chinese renminbi, even though China is one of the largest consumers of gold.

Indian economy has look and feel of ‘steady as she goes' for FY26: FinMin
Indian economy has look and feel of ‘steady as she goes' for FY26: FinMin

The Print

time4 hours ago

  • The Print

Indian economy has look and feel of ‘steady as she goes' for FY26: FinMin

With inflation remaining within the target range and monsoon progress on track, the domestic economy enters the second quarter of FY26 on a relatively firm footing. In its monthly economic review, the ministry said the first quarter of fiscal 2025-26 (FY26) presents a picture of resilient domestic supply and demand fundamentals. New Delhi, Jul 28 (PTI) Indian economy has the look and feel of 'steady as she goes' for the current fiscal, the finance ministry said on Monday even as it flagged slowing credit growth. While geopolitical tensions have not elevated further, the global slowdown, particularly in the US (which shrank by 0.5 per cent in Q1 2025), could dampen further demand for Indian exports. 'Continued uncertainty on the US tariff front may weigh on India's trade performance in the coming quarters. Slow credit growth and private investment appetite may restrict acceleration in economic momentum,' it said. Further, given the deflationary trend in the wholesale price index, one has to observe economic momentum in nominal quantities. Measured in constant prices, economic activity may appear healthier than it is, the review report said. 'All that said, the economy has the look and feel of 'steady as she goes' as far as FY26 is concerned,' it said. The report noted despite monetary easing and a strong bank balance sheet, credit growth has slowed, reflecting cautious borrower sentiment and possibly risk-averse lender behaviour. 'A growing preference for bond markets, particularly commercial papers among corporates due to lower borrowing costs, may also explain the shift,' it said. Piggybacking on initiatives like the Employment Linked Incentive (ELI) scheme, the ministry said it is time for corporates to set the ball in motion. The Reserve Bank has cumulatively reduced the short-term lending rate (repo) by 100 basis points since February. With an outlay of Rs 99,446 crore, the ELI scheme aims to incentivise the creation of more than 3.5 crore jobs in the country over a period of 2 years, with special focus on the manufacturing sector. The report said that despite global headwinds marked by trade tensions, geopolitical volatility, and external uncertainties, India's macroeconomic fundamentals have remained resilient. Aided by robust domestic demand, fiscal prudence and monetary support, India appears poised to continue as one of the fastest-growing major economies, with various forecasters, including S&P, ICRA, and the RBI's Survey of Professional Forecasters, projecting GDP growth rates for FY26 in the range of 6.2 per cent and 6.5 per cent, it said. The report said high-frequency indicators reflected broad-based strength, registering strong year-on-year growth. While the manufacturing and construction sectors continued to expand, the services sector anchored the overall economic growth in Q1 of FY26. As of now, favourable progress in the southwest monsoon has bolstered agricultural activity, leading to higher kharif sowing compared to the previous year. Adequate fertiliser availability and comfortable reservoir levels augur well for a healthy harvest outlook, providing fresh impetus to rural incomes and consumption, the ministry said. PTI NKD HVA This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store