RBI's Master Directions: Streamlining Digital Banking Channels

The Reserve Bank of India (RBI) has introduced seven new master directions on digital banking channels authorisation, targeting various regulated entities like commercial banks and small finance banks. This initiative aims to simplify regulatory processes, enhance ease of doing business, and boost clarity in digital banking operations.

The Reserve Bank of India (RBI) issued new directives on Friday encompassing digital banking channels authorisation, targeting regulated entities such as commercial and small finance banks.

This initiative, part of a comprehensive overhaul by the RBI, aims to streamline regulatory clarity, ease the compliance burden, and foster a favourable business environment.

Following stakeholder consultations, 244 master directions have been consolidated to cover 11 types of regulated entities, with these instructions set to take effect starting January 1, 2026, encompassing robust guidelines on policies, eligibility, and technological processes.