Reserve Bank of India (Payments Banks – Miscellaneous) Directions, 2025 (Updated as on April 01, 2026)

RBI/DOR/2025-26/221 DOR.SOG(SPE).REC.No.140/13-04-001/2025-26 November 28, 2025 Previous Versions

Reserve Bank of India (Payments Banks – Miscellaneous) Directions, 2025 (Updated as on April 01, 2026)

Table of Contents

Chapter I – Preliminary A. Short Title and Commencement B. Applicability C. Definitions

Chapter II – Role of the Board A. Board Approved Policies B. Key Responsibilities C. Reviews by the Board

Chapter III – Acceptance of Deposits

Chapter IV – Depositor Education and Awareness Fund A. Definitions B. Credits to the Fund C. Refunds and Interest D. Registration Guidelines E. Procedural Guidelines for Transfer and Claim F. Returns G. Disclosure in Notes to Accounts H. Audit I. Preservation of Records J. Furnishing of Information K. Contact Details L. Interpretation of the Provisions of the Scheme

Chapter V – Regulatory Compliance and Legal Matters A. Implementation of Instructions Issued by RBI B. Legal Compliance C. Court Directives D. Inter-Governmental Agreement (IGA) with United States of America (US) under Foreign Accounts Tax Compliance Act (FATCA) - Registration Requirements E. Camps and Campaigns for Periodic Updation of KYC

Chapter VI – Financial Conduct and Prohibited Activities A. Restrictions on Loans and Advances B. Maintenance of Current Accounts C. Donations or Contributions for Public / Charitable Purposes D. Prohibition on Acceptance of Deposits at the Instance of Private Financiers / Unincorporated Bodies E. Prohibition on Association with Prize Chit Schemes and Sale of Lottery Tickets

Chapter VII – Taxation and Accounting Related Matters A. Demand for Information by Income Tax Authorities

Chapter VIII – Human Resource and Capacity Building A. Training and Awareness B. Certifications

Chapter IX – Operational and Administrative Matters A. Mandatory Leaves and Staff Rotation B. Statement of Immovable Property

Chapter X – Valuation of Properties - Empanelment of Valuers

Chapter XI- Filing of Security Interest Relating to Immovable (Other Than Equitable Mortgage), Movable, and Intangible Assets in CERSAI

Chapter XII – Repeal Provisions A. Repeal and Saving B. Application of Other Laws not Barred C. Interpretations

Annex I Annex II Annex III Annex IV Annex V Annex VI Annex VII Annex VIII Annex IX Annex X

In exercise of the powers conferred by Section 26A 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 – Miscellaneous) 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' or ‘PBs’ and individually as a 'bank' or ‘PB’).

C. Definitions

4. In these Directions, unless the context otherwise requires, the terms herein shall bear the meanings assigned to them below:

• (1) 'Act' means the Banking Regulation Act, 1949 (10 of 1949); and 1 [(1A) ’Current Account’ shall mean a form of demand deposit account wherefrom withdrawals are allowed any number of times depending upon the balance in the account or up to a particular agreed amount and shall also be deemed to include other deposit accounts which are neither Savings nor Term deposit account.]
• (2) ‘DICGC' means the Deposit Insurance and Credit Guarantee Corporation established under Section 3 of the Deposit Insurance Corporation Act, 1961

5. Additional definitions have been provided in the respective chapters as per the applicability.

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

Chapter II – Role of the Board

A. Board Approved Policies

7. A bank shall have separate Board-approved policies relating to the following areas, as applicable:

• (1) lending to its own employees out of the bank’s own funds, as mandated in paragraph 46 of these Directions;
• (2) making of donations, in line with instructions contained in paragraph 56 of these Directions;
• (3) courses / certifications required for specialised areas of operations as laid out in paragraph 66 and paragraph 67 of these Directions;
• (4) list of sensitive positions to be covered under mandatory leave requirements in terms of paragraph 68 of these Directions; and
• (5) valuation of properties in terms of paragraph 73 of these Directions.

B. Key Responsibilities

8. The Board of a bank shall ensure that its directors are familiar with requisite techniques, technologies and concepts as detailed in paragraph 65 of these Directions.

C. Reviews by the Board

9. The Board of a bank shall review and update policies in respect of ‘mandatory leave' as set out in paragraph 68 of these Directions.

Chapter III – Acceptance of Deposits

10. PBs may undertake only certain restricted activities such as acceptance of demand deposits, i.e., current deposits, and savings bank deposits. PBs can issue PPIs in addition to opening normal accounts. However, a PPI entity cannot coexist with the PB in the same group.

11. Given that their primary role is to provide payments and remittance services and demand deposit products to small businesses and low-income households, PBs are restricted to holding a maximum balance of ₹2,00,000 per individual customer at the end of the day. However, PBs can accept higher amount provided at the end of the day the balance does not exceed ₹2,00,000. The individual customer limit applies to PPI balances also. The above limit shall apply to customer deposits and not to any security/earnest money deposit the bank may collect from any of its service providers in the ordinary course of business.

12. PBs may make arrangements with any other scheduled commercial bank (including scheduled small finance bank), for amounts in excess of the prescribed limits, to be swept into an account opened for the customer at that bank. This arrangement should be activated with the prior written consent of the customer. Keeping in view the financial inclusion objective of the payments bank model, the following instructions are to be followed:

• (1) PBs are permitted to act as Business Correspondents (BCs) of other banks. Under the BC arrangement and with prior specific or general consent of customers, PB may effect the transfer of funds deposited by them into their account with another eligible bank, so that the balance in their account with the PB does not exceed ₹2,00,000 or any such lower amount as specified by them.
• (2) At any time, PB shall not have rights to operate or have real-time access to the funds available in the account of the customer at any other bank, including the transferee bank. However, as a BC of a bank, PBs may facilitate withdrawals and transfers by the customer from their account with the bank of which it is the BC. It is reiterated for clarity that PBs shall not initiate any debit transactions in the customer’s account, held with another bank, under a power of attorney or general consent of the customer.
• (3) A PB shall neither arrange nor avail of intraday funding facilities for its customers, based on the balances available in the customer’s account with any other bank, or otherwise.
• (4) PBs are required to closely monitor the accounts of their customers, to identify and report suspicious transactions, when the deposit/ transaction volumes are not commensurate with the customer’s profile.

13. No NRI deposits should be accepted by PBs.