Reserve Bank of India (Payments Banks – Branch Authorisation) Directions, 2025

RBI/DOR/2025-26/207 DOR.LIC.REC.No.126/22-01-001/2025-26 November 28, 2025

Reserve Bank of India (Payments Banks - Branch Authorisation) Directions, 2025

Table of Contents

• Chapter I – Preliminary
• Chapter II – Role of Board of Directors
• Chapter III – Banking Outlet Authorisation
• Chapter IV – Business Facilitator / Business Correspondent Model
• Chapter V – Doorstep Banking
• Chapter VI – Information Reporting
• Chapter VII – Repeal and other Provisions
• Annex I
• Annex II
• Annex III
• Annex IV
• Annex V

In exercise of the powers conferred by Section 23 and Section 35A of the Banking Regulation Act, 1949 and all other provisions / laws enabling the Reserve Bank of India (‘RBI’) in this regard, RBI being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Directions hereinafter specified.

Chapter I – Preliminary

A. Short Title and Commencement

1. These Directions shall be called the Reserve Bank of India (Payments Banks - Branch Authorisation) Directions, 2025.
2. These directions shall come into force with immediate effect.

B. Applicability

3. These Directions shall be applicable to Payments Banks (hereinafter collectively referred to as 'banks' and individually as a 'bank').

C. Definitions

4. In these Directions, unless the context states otherwise, the terms herein shall bear the meanings assigned to them below: (1) ‘Access Point’ means a Banking Outlet of a bank. (2) ‘Administrative Office’ means a corporate, regional, zonal, or any other office, by whatsoever name called, that exercises control or oversight functions on units / Banking Outlets / Offices falling under its jurisdiction and undertakes internal administrative functions including oversight of bank’s own staff and carries out no banking or business transactions. Direct interface with customers is not permitted. (3) ‘Back Offices’ means a Central Processing Centre (CPC) or an Office, by whatever name called, that exclusively attends to functions such as data processing, processing of loans, verification and processing of documents, issuance of cheque books, demand drafts etc. on requests received from other Banking Outlets and carries out other functions incidental to banking business. Direct interface with customers is not permitted. (4) ‘Banking Outlet’ is a fixed point service delivery unit, manned by either bank’s staff or its Business Correspondent where services of acceptance of deposits, encashment of cheques / cash withdrawal, or lending of money are provided for a minimum of four hours per day for at least five days a week. It carries uniform signage with name of the bank and authorisation from it, contact details of the controlling authorities and complaint escalation mechanism. The bank should have a regular off-site and on-site monitoring of the ‘Banking Outlet’ to ensure proper supervision, ‘uninterrupted service’ except temporary interruptions due to telecom connectivity, etc. and timely addressing of customer grievances. The working hours/days need to be displayed prominently.

A Banking Outlet which does not provide delivery of service for a minimum of four hours per day and for at least five days a week will be considered a ‘Part-time Banking Outlet’.

Explanations: (i) Extension Counters, Satellite Offices, Part-shifted Branches, Ultra Small Branches and Specialised Branches, subject to their satisfying the definition given above, shall be treated as independent ‘Banking Outlets’ or ‘Part-time Banking Outlets’, as the case may be. (ii) ATMs, E- lobbies, Bunch Note Acceptor Machines (BNAM), Cash Deposit Machines (CDM), E- Kiosks and Mobile Branches will not be treated as ‘Banking Outlets’. Point of Sale (PoS) terminals where limited cash withdrawal facility is allowed by banks in terms of extant instructions without having an arrangement with the concerned entities as ‘business correspondents’ will not be considered as ‘Banking Outlets’.

(5) ‘Unbanked Rural Centre’ (URC) is a rural (Tier 5 and 6) centre that does not have a CBS-enabled ‘Banking Outlet’ for carrying out customer based banking transactions.

5. All other expressions, unless defined herein, shall have the same meaning as have been assigned to them under the Banking Regulation Act, 1949 or the Reserve Bank of India Act, 1934 or any statutory modification or re-enactment thereto, or Glossary of Terms published by RBI or as used in commercial parlance, as the case may be.

Chapter II – Role of Board of Directors

A. Board Approved Policy

6. A bank shall put in place separate Board-approved policies for the following:

1. Opening, merging, shifting, conversion and closure of Banking Outlets for strict compliance with these directions, in letter and spirit as prescribed in paragraphs 8 to 19.
2. Opening of Mobile Branches, Administrative Offices, Back Offices, Call Centres, Mobile Automated Teller Machines (ATMs), Cash Deposit Machines (CDMs) / Bunch Note Acceptor Machines (BNAMs), etc. as prescribed in paragraphs 20 to 22 and paragraphs 25 to 32.
3. Acquisition of accommodation on lease / rental basis by a bank for its use as specified in paragraph 23 and 24.
4. Engagement of Business Correspondents (BCs) with the objectives of adequate oversight of the BCs as well as provision of services to customers, putting in place an effective complaints redressal system as prescribed in paragraphs 33 to 54.
5. Offering Doorstep Banking services including selection of agents and payment of fee / commission, charges, if any, to be levied on the customer, etc. as prescribed in paragraphs 55 to 70.

B. Key responsibilities

7. The Board of a bank shall fulfil the following responsibilities: (1) Banking Outlets The Board shall ensure regular off-site and on-site monitoring system of the ‘Banking Outlet’ to ensure proper supervision, ‘uninterrupted service’ and timely addressing of customer grievances. The Board shall regularly review and monitor the transactions in the Banking Outlets to see that banking services are being transacted in these outlets and more specifically the target customers for financial inclusion are getting the banking facilities in unbanked rural centres. The Board shall set internal targets for financial inclusion. As Payments Banks have been set up to further financial inclusion and their client base would primarily be migrant labour workforce, low income households, small businesses, other unorganised sector entities, etc. their internal targets shall be in line with their objectives. Data on centre-wise and tier-wise customer accounts and transactions (Type and number of accounts, deposits received, advances made, remittances processed, outstanding balances, etc.) should be captured on regular basis and the Board shall review the progress in this regard regularly, say on quarterly basis. The Board shall make the above data available to RBI as and when required and called for.

(2) Business Correspondent Model (BC) The Board shall approve the policy for engaging Business Correspondents (BCs). The Board shall examine the issue of allowing BCs to handle deposit and payment transactions of various credits, remittance, overdraft and other products of bank. Complaints redressal system in this regard shall also be laid down by the Board. The Board shall review the operations of BCs at least once every six months with a view to ensuring that requirement of prefunding of Corporate BCs and BC Agents should progressively taper down with the passage of time as specified in paragraph 50. The Board of a bank shall review the position of payment of remuneration of BCs and shall also lay down a system of monitoring by the top management of the bank.

(3) Doorstep Banking The Board shall review the operation of doorstep banking facility on a half-yearly basis, during the first year of its operation and subsequently on an annual basis.