Reserve Bank of India (Payments Banks – Miscellaneous) Supervisory Directions, 2026
RBI master-direction RBI/DoS/2026-27/434 · 31 Jul 2026
RBI master-direction RBI/DoS/2026-27/434 · 31 Jul 2026
Summary
Check the official recordThe Reserve Bank of India issues these supervisory directions to Payments Banks regarding operational and governance standards. The directions mandate specific requirements for IT system access, management of inoperative accounts, unclaimed deposits, and nomination facilities. Banks must implement robust fraud prevention measures, including legal compliance certification, forensic scrutiny, and the establishment of a Best Practices Code. The directions also require the implementation of a Protected Disclosure Scheme and a structured internal vigilance machinery, including the appointment of a Chief of Internal Vigilance. Banks must report progress on inoperative accounts and nomination coverage to the Senior Supervisory Manager of the RBI through the DAKSH portal on a quarterly basis. These directions take effect immediately.
What you must do
Key dates
Who is affected
Exceptions
If you do not comply
RBI/DoS/2026-27/434
DoS.CO.PPG.28/11.01.005/2026-27
July 31, 2026
Reserve Bank of India (Payments Banks – Miscellaneous) Supervisory Directions, 2026
Table of Contents
Chapter I - Preliminary
A. Short Title and Commencement
B. Applicability
C. Definitions
Chapter II - Access to IT Systems
Chapter III - Inoperative Accounts / Unclaimed Deposits
Chapter IV - Nomination Facility
Chapter V - Fraud Prevention Measures
A. Frauds due to Collusion of the Bank Officials
B. Large Value Frauds
C. Safe Custody of Critical Documents
D. Accounts opened by Employees
E. Legal Compliance Certificate
F. Legal Compliance Audit
G. Forensic Scrutiny
H. Exercise of Discretionary Power
I. Best Practices Code in Banks
J. Other Instructions
Chapter VI - Protected Disclosure Scheme
A. Scope and Coverage
B. Procedure for Lodging the Complaint under the Scheme
C. Protected Disclosure Policy
Chapter VII – Vigilance
A. Preamble
B. Introduction
C. Vigilance Angle
D. Chief of Internal Vigilance
D.1 Appointment
D.2 Tenure
D.3 Association with Sensitive Matters
D.4 Submission of Reports and Returns - Review
E. Preventive Vigilance
F. Staff Rotation and Mandatory Leave
G. Complaints
H. Investigation Agency for Conducting Investigations
I. Review of Cases entrusted to Investigating Agencies
J. Action against Persons making False Complaints
K. Liaison with Agencies
Chapter VIII - Repeal and Other Provisions
A. Repeal and Saving
B. Application of Other Laws Not barred
C. Interpretations
In exercise of the powers conferred by Section 35-A 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 Directions hereinafter specified.
Chapter I - Preliminary
A. Short Title and Commencement
These Directions shall be called the Reserve Bank of India (Payments Banks – Miscellaneous) Supervisory Directions, 2026.
These Directions shall come into effect immediately upon issuance.
B. Applicability
C. Definitions
Chapter II - Access to IT Systems
Chapter III - Inoperative Accounts / Unclaimed Deposits
The bank shall take necessary steps to reduce the number of inoperative accounts and accounts pending for updation / periodic updation of ‘Know Your Customer’ (KYC) and make the process of updation / periodic updation of such accounts smoother and hassle free, including by enabling seamless updation of KYC through mobile / internet banking, non-home branches, and Video Customer Identification Process, in accordance with the relevant provisions of the Reserve Bank of India (Payments Banks - Responsible Business Conduct) Directions, 2025.
The bank may facilitate the process of activation of accounts of beneficiaries of various Central / State government schemes like Direct Benefit Transfer (DBT) / Electronic Benefit Transfer (EBT) etc., and accounts pending for updation / periodic updation of KYC, by taking an empathetic view in such cases, since these accounts mostly pertain to the people from the underprivileged sections of the society.
The bank may organise special campaigns for facilitating activation of inoperative accounts and accounts pending for periodic updation of KYC.
The bank may also facilitate Aadhaar updation for its customers through its branches providing Aadhaar related services.
The Customer Service Committee of the Board shall monitor the progress in reduction of inoperative accounts and accounts pending for updation of KYC and the special efforts made by the bank in this regard.
The bank shall report the progress on reduction of inoperative accounts and accounts pending for updation of KYC on a quarterly basis to the Senior Supervisory Manager (SSM), RBI through DAKSH portal.
Chapter IV - Nomination Facility
The bank shall obtain nomination in case of all existing and new eligible customers having deposit accounts, safe custody articles, and safety lockers, as the case may be, to avoid inconvenience and undue hardship to survivors / family members of deceased depositors, in accordance with relevant provisions of the Reserve Bank of India (Payments Banks - Responsible Business Conduct) Directions, 2025.
The Board of Directors / Customer Service Committee (CSC) of the Board of the bank shall review, on a periodic basis, the achievement of nomination coverage.
The bank shall also report the progress on nomination coverage to the SSM, RBI through DAKSH portal on a quarterly basis.
The bank shall suitably sensitise its frontline staff in the branches for obtaining nomination as well as appropriate handling of claims of deceased constituents and dealing with nominees / legal heirs. The bank shall modify the Account Opening Forms suitably (if not already done) with provision for the customers to avail or opt out of nomination facility.
The bank, in addition to directly notifying the customers, shall publicise the benefits of using the nomination facility through various media, including launching periodical drives towards achieving a full coverage of all eligible customer accounts.
Chapter V - Fraud Prevention Measures
From time to time, RBI has constituted various committees such as the Ghosh Committee, Gilani Committee, and Narang Committee, to examine different aspects relating to frauds and malpractices in banks and to recommend measures for their prevention and early detection. Based on the recommendations of these committees, RBI has, over the years, issued several guidelines to banks aimed at strengthening internal controls, enhanced monitoring in sensitive areas of banking operations, and curbing the occurrence of frauds. The key fraud preventive measures covered under these guidelines are outlined below.
A. Frauds due to Collusion of the Bank Officials
B. Large Value Frauds
C. Safe Custody of Critical Documents
The bank shall exercise safeguards like maintenance of proper records, dual control, periodical balancing of books / verification, submission of control returns, and ensure their observations.
Blank Demand Drafts / Pay Orders and Mail Transfer forms should be treated as security items and the branches should take adequate safeguards against their pilferage. They should be held in joint custody and balanced daily.
The bank shall ensure that no unauthorised person has access to security items like blank cheques, drafts, fixed deposit receipts, pay orders, account opening forms, specimen signature cards / books, and loose ledger sheets.
The ledgers and other books of accounts, voucher bundles, and other items of Stationery should be stored properly.