Latest news with #DigitalBankingChannelsAuthorisationDirections
Time of India
21-07-2025
- Business
- Time of India
RBI seeks to tighten norms for digital banking
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.
Time of India
21-07-2025
- Business
- Time of India
RBI bars banks from promoting third-party products on digital platforms; new draft rules mandate customer consent, risk checks for online banking
NEW DELHI: The Reserve Bank of India (RBI) has proposed a ban on displaying third-party products and services, including those from promoter groups and subsidiaries, on banks' digital banking platforms. Issuing its draft 'Digital Banking Channels Authorisation Directions, 2025' on Monday, RBI said such displays will only be allowed if specifically permitted by the regulator. Risk-based monitoring mandatory According to the draft norms, banks will be required to implement risk-based transaction monitoring and surveillance mechanisms. They must track customer transaction patterns, flag unusual transactions, and, where necessary, seek prior customer confirmation for outlier transactions in line with their fraud risk management policies. RBI has invited feedback from stakeholders on the draft guidelines until August 11. Digital channels should be network independent The draft also mandates that mobile banking services offered by banks should be accessible across mobile network operators, ensuring network independence for customers. Additionally, banks cannot make digital banking enrollment mandatory for availing other facilities, like debit cards. 'The choice to apply for digital banking facilities shall lie solely with the customer,' the draft said, adding that explicit customer consent must be recorded for providing such services. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like This Sticky Sweet Treat Is Healthier Than You Think – 15 Reasons to Add It to Your Diet! Learn More Undo RBI approval needed for transactional banking facilities Banks seeking to launch transactional digital banking services must obtain prior RBI approval. Applications must be supported by a board resolution and proof of net worth, which must meet the higher of either the minimum regulatory requirement or Rs 50 crore, as on March 31 of the previous financial year. Banks using Core Banking Solutions (CBS) and capable of handling IPv6 internet traffic will be allowed to offer view-only digital banking services. The proposed rules aim to enhance customer protection, improve risk management, and prevent misuse of digital platforms for marketing unrelated third-party products. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
