On November 28, 2025, the Reserve Bank of India (RBI) issued the Digital Banking Channels Authorisation Directions, 2025, establishing a consolidated regulatory framework for the launch and operation of digital banking services by commercial banks.
The Directions take effect from January 1, 2026, and apply to commercial banks, including banking companies (excluding small finance banks, payments banks, and local area banks), corresponding new banks, and the State Bank of India, as defined under the Banking Regulation Act, 1949.
Through this framework, the RBI governs the authorisation and oversight of digital banking channels, covering services delivered via internet banking, mobile applications, Unstructured Supplementary Service Data (USSD), Short Message Service (SMS), and other electronic platforms.
Importantly, the new Directions replace earlier circulars and guidelines on the subject, consolidating regulatory requirements into a single instrument while preserving actions taken under the repealed rules.
The RBI positions these rules as a formal basis for supervising both “view-only” facilities and transactional digital banking services offered by eligible banks. Consequently, all covered institutions must align their digital operations with the updated authorisation regime and the broader set of compliance obligations embedded within the Directions.
Eligibility Criteria For Digital Banking Facilities
Under the final Directions, banks must satisfy defined eligibility thresholds before launching either view-only or transactional digital services.
To begin with, all commercial banks that have implemented a Core Banking Solution (CBS) and enabled their public-facing IT systems to handle Internet Protocol Version 6 (IPv6) traffic qualify to offer view-only digital banking facilities. This category covers basic, non-financial services delivered through internet banking, mobile banking, and other approved digital channels.
However, banks must formally notify the RBI’s Department of Regulation via the PRAVAAH portal within 30 days of deciding to launch such services, and must submit a Gap Assessment and Internal Controls Adequacy (GAICA) report certified by an approved authority for supervisory scrutiny. The RBI retains the right to examine these filings before permitting operations to proceed.
By contrast, banks seeking to provide transactional banking facilities must clear a higher regulatory bar and obtain prior RBI approval. Although they must meet the same basic infrastructure prerequisites, CBS implementation and IPv6 readiness, they must additionally demonstrate compliance with minimum regulatory capital to risk-weighted assets (CRAR) norms, as well as satisfy applicable paid-up capital or net-worth requirements as of the immediately preceding financial year.
Moreover, applicant banks must show that they possess adequate financial and technical capability to sustain digital operations on an ongoing…
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