Banks Can’t Force Digital Banking Services on Customers: RBI Final Norms

Mumbai: The Reserve Bank of India (RBI) on Friday issued its final circular on(Digital Banking Channels Authorisation) 2025 stating that banks cannot make it mandatory for customers to choose any digital banking channel to avail services like debit cards. The norms now require banks to obtain explicit consent from customers before providing digital banking services.

“Digital Banking Channels refer to modes provided by the banks over web sites (i.e., internet banking), mobile phones (i.e., mobile banking) or other digital channels through electronic devices/equipment for the execution of financial, banking and other transactions as required for digital banking services which involve significant level of process automation and cross institutional service capabilities,” the RBI said.

Explicit and documented consent will now be mandatory before providing any digital banking facility. Customers will receive alerts via SMS or email for both financial and non-financial transactions on their registered contact details.

While it may be 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 central bank said.

The eligibility criteria for providing transactional banking facility should be Rs 50 crore whichever is higher, as of March 31 of the preceding financial year.

Banks offering mobile banking services must ensure that customers across all mobile network operators can access the service, meaning it must be network-independent. “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,” the RBI said.

To ensure greater transparency, the RBI has directed banks to present all terms and conditions in plain, simple language across English, Hindi, and local languages. Additionally, banks are required to implement risk mitigation mechanisms based on transaction volume and velocity, aligned with their internal risk assessments.