11:30 AM IST – The Reserve Bank of India (RBI) has issued a new set of consolidated Master Directions for digital banking in India. These instructions aim to govern internet and mobile banking services more clearly and uniformly across all banks — from major private lenders to small and cooperative banks. As per the RBI, the new directions will become fully started from January 1, 2026. It will replace several outdated circulars issued over the last two decades.
RBI says digital banking has evolved massively, adaptation around people also pretty fast, and regulations needed a refresh to provide much safer, smarter, and more inclusive banking experiences for every customer.
What’s Included Under Digital Banking Now?
The framework covers:
- Internet banking
- Mobile banking apps
- Any electronic/digital channel that users rely on for banking
RBI is standardising two types of digital experiences:
- View-Only Banking – balance check, statements, account view
- Transactional Banking – fund transfers, bill pay, financial actions
For the second category, banks must meet RBI’s tech + compliance standards before launching or expanding features.
What Changes for Banks?
Unlike earlier rules, banks cannot simply launch new digital banking features on their own. They must take RBI authorisation before offering full-transaction mobile or internet banking, and ensure:
- Core Banking System (CBS) readiness
- Modern infrastructure (IPv6 enabled)
- Strong cybersecurity and fraud controls
- Proper customer-risk management policies
These new guidelines apply to all bank categories — including small finance banks, payment banks, cooperative banks and rural banks.
Translation? Some banks, especially in rural areas, may first offer only “view-only features” until they upgrade tech for transactions.
What Changes for Customers & Users?
This is where it matters the most:
| What improves? | What it means for you |
|---|---|
| More reliable digital apps | Fewer glitches or downtime, |
| Stronger security checks | Reduced chance of fraud |
| Standard rules for all banks | Equally safe digital banking everywhere |
| You still have a choice | Branch banking cannot be forced on you |
Digital should become a value-addition, not a compulsion. most users complaints on app stores it may reduce after new upgrade.
What’s New & Better Compared to Older Rules?
Earlier, digital guidelines were scattered across 5,600+ different circulars. Now, RBI has consolidated them into a cleaner Master Direction — easier for banks to follow and comply.
RBI has also allowed banks to display and promote certain third-party financial products on their digital channels after login — something that was restricted earlier.
This allows banks to innovate — while keeping controls tighter than before.
Why This Is a Game-Changer
Digital banking is no longer an add-on service — it has become core banking. Banks that don’t upgrade risk losing customers to faster, smarter competitors.
For millions of users: Accessing banking on phone or laptop will feel safer, more stable, and more universal — even for those banking with smaller institutions.
If you are a banking customer in India, expect your app to become better by 2026. And if you are a bank, the countdown to compliance has already started.
Follow Up Story – NPCI launches NetBanking 2.0 with Banking Connect: Real-time oversight for RBI, Fast payments for users
