The RBI has introduced updated guidelines for Payments Banks, focusing on limiting customer liability for unauthorized electronic transactions, thereby enhancing security standards.
Reserve Bank of India (Payments Banks - Responsible Business Conduct) Second Amendment Directions, 2026
On June 24, 2026, the Reserve Bank of India issued the Second Amendment Directions relating to Responsible Business Conduct for Payments Banks (PBs). This set of guidelines targets customer liabilities in the context of unauthorized electronic banking transactions.
The new provisions aim to safeguard consumer interests by limiting liabilities and enhancing security measures in electronic banking activities. By consolidating existing rules and focusing on consumer protection, the RBI seeks to foster a secure banking environment.
Legal counsel must ensure that their clients in the Payments Banks sector align operations with these updated frameworks. Awareness and compliance regarding customer protection laws are critical for mitigating risks in electronic transactions.
Citations
- Reserve Bank of India (Payments Banks - Responsible Business Conduct) Second Amendment Directions, 2026