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Business Standard
21-07-2025
- Business
- Business Standard
Not mandatory for customers to opt for digital banking: RBI draft norms
Banks should not make it mandatory for customers to opt for any digital banking channel to avail themselves of other facilities, such as debit cards, the Reserve Bank of India (RBI) said in the draft norms on Digital Banking Channels Authorisation, released on Monday. 'While it may be more convenient for the customer to opt for some services together (for example, virtual access to card controls), the choice to apply for digital banking facilities shall lie solely with the customer,' the draft norms said, clarifying that banks can continue to obtain and record mobile numbers of customers to send transaction alerts and other notifications in line with KYC (Know Your Customer) requirements at the time of opening accounts. Further, the norms stated that banks should obtain consent from customers for providing digital banking services. 'Banks shall obtain explicit consent from the customer for providing digital banking services, which may be duly recorded and documented. It shall also be clearly indicated that SMS/email alerts will be sent to the mobile number/email of the customer registered with the bank for operations, both financial and non-financial, in their account(s).' Digital Banking Channels refer to modes provided by banks over websites (i.e., internet banking), mobile phones (i.e., mobile banking), or other digital channels through electronic devices/equipment for the execution of financial transactions. The draft norms also proposed that third-party products and services, including those of promoter groups or bank group entities (subsidiaries/joint ventures/associates), should not be displayed on banks' digital banking channels except as specifically permitted by the RBI. In addition, the RBI said that banks shall put in place risk-based transaction monitoring and surveillance mechanisms. 'Study of customer transaction behaviour patterns and monitoring unusual transactions or obtaining prior confirmation from customers for outlier transactions may be incorporated in the systems in accordance with the Fraud Risk Management Policy of the bank,' it said. Comments on the draft norms are invited from stakeholders until August 11, 2025.
Time of India
21-07-2025
- Business
- Time of India
RBI proposes ban on display of 3rd party products on banks' digital channels
Third-party products and services should not be displayed on banks' digital banking channels , according to RBI 's draft norms issued on Monday. The 'Reserve Bank of India (Digital Banking Channels Authorisation) Directions, 2025' said banks should put in place a risk-based transaction monitoring and surveillance mechanism. Explore courses from Top Institutes in Select a Course Category Operations Management MBA others MCA Degree Leadership Data Science Project Management Management Finance Public Policy healthcare Data Analytics Data Science Product Management Others Digital Marketing Cybersecurity Healthcare Design Thinking Artificial Intelligence Technology CXO PGDM Skills you'll gain: Quality Management & Lean Six Sigma Analytical Tools Supply Chain Management & Strategies Service Operations Management Duration: 10 Months IIM Lucknow IIML Executive Programme in Strategic Operations Management & Supply Chain Analytics Starts on Jan 27, 2024 Get Details Study of customer transaction behaviour pattern and monitoring unusual transactions or obtaining prior confirmation from customers for outlier transactions may be incorporated in the systems in accordance with the Fraud Risk Management Policy of the bank, said the draft. Stakeholders' comments have been sought on the draft till August 11. "Third-party products and services, including those of promoter groups or bank group entities (subsidiaries/joint ventures/associates), shall not be displayed on banks' digital banking channels except as specifically permitted by the Reserve Bank from time to time...," it said. Live Events Banks offering mobile banking service (other than through mobile applications) must ensure that customers across mobile network operators can avail of the service, meaning the service will be network independent. The draft said banks shall put in place appropriate risk mitigation measures in accordance with their policies, like transaction limit (per transaction, daily, weekly, monthly), transaction velocity limit, and fraud checks depending on their risk perception. It further said banks should not make it mandatory for the customer to opt for any digital banking channel to avail any other facility like debit cards. "While it may be more convenient for the customer to opt for some services together (for example, virtual access to card controls), the choice to apply for digital banking facilities shall lie solely with the customer," the draft said. Also, banks should obtain explicit consent from the customer for providing digital banking services, which may be duly recorded/documented, it said. "Banks shall require prior approval of the Reserve Bank for launching transactional banking facility," the draft said. Subject to fulfilment of the prudential eligibility criteria, banks may apply to the respective Regional Office of the Reserve Bank for launch of transactional banking facility, along with a board resolution. They will also have to provide supporting documents, including related to net worth as per minimum regulatory requirement or Rs 50 crore, whichever is higher, as on March 31 of the immediately preceding financial year. All banks which have implemented Core Banking Solution (CBS) and have enabled their public-facing Information Technology (IT) infrastructure to handle Internet Protocol Version 6 (IPv6) traffic are eligible to provide view-only banking facility for internet banking, mobile banking, and other digital banking channels-based services, the draft said. PTI Economic Times WhatsApp channel )
News18
21-07-2025
- Business
- News18
RBI proposes ban on display of 3rd party products on banks digital channels
Agency: PTI Mumbai, Jul 21 (PTI) Third-party products and services should not be displayed on banks' digital banking channels, according to RBI's draft norms issued on Monday. The 'Reserve Bank of India (Digital Banking Channels Authorisation) Directions, 2025' said banks should put in place a risk-based transaction monitoring and surveillance mechanism. Study of customer transaction behaviour pattern and monitoring unusual transactions or obtaining prior confirmation from customers for outlier transactions may be incorporated in the systems in accordance with the Fraud Risk Management Policy of the bank, said the draft. Stakeholders' comments have been sought on the draft till August 11. 'Third-party products and services, including those of promoter groups or bank group entities (subsidiaries/joint ventures/associates), shall not be displayed on banks' digital banking channels except as specifically permitted by the Reserve Bank from time to time…," it said. Banks offering mobile banking service (other than through mobile applications) must ensure that customers across mobile network operators can avail of the service, meaning the service will be network independent. The draft said banks shall put in place appropriate risk mitigation measures in accordance with their policies, like transaction limit (per transaction, daily, weekly, monthly), transaction velocity limit, and fraud checks depending on their risk perception. It further said banks should not make it mandatory for the customer to opt for any digital banking channel to avail any other facility like debit cards. 'While it may be more convenient for the customer to opt for some services together (for example, virtual access to card controls), the choice to apply for digital banking facilities shall lie solely with the customer," the draft said. Also, banks should obtain explicit consent from the customer for providing digital banking services, which may be duly recorded/documented, it said. 'Banks shall require prior approval of the Reserve Bank for launching transactional banking facility," the draft said. Subject to fulfilment of the prudential eligibility criteria, banks may apply to the respective Regional Office of the Reserve Bank for launch of transactional banking facility, along with a board resolution. They will also have to provide supporting documents, including related to net worth as per minimum regulatory requirement or Rs 50 crore, whichever is higher, as on March 31 of the immediately preceding financial year. All banks which have implemented Core Banking Solution (CBS) and have enabled their public-facing Information Technology (IT) infrastructure to handle Internet Protocol Version 6 (IPv6) traffic are eligible to provide view-only banking facility for internet banking, mobile banking, and other digital banking channels-based services, the draft said. PTI NKD NKD BAL BAL view comments First Published: July 21, 2025, 20:00 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
