The Reserve Bank of India has issued Second Amendment Directions for Payments Banks addressing limitations on customer liability in unauthorized electronic banking transactions.
RBI Issues Amendments for Payments Banks on Customer Liability Limitations
The Reserve Bank of India (RBI) has announced the Second Amendment Directions for Payments Banks (PBs), focusing on limiting customer liability in the context of unauthorized electronic banking transactions. This amendment aims to strengthen consumer protection in the rapidly evolving digital payment environment.
These directions emphasize that payments banks must implement effective safeguards to ensure customer interests are protected, particularly against fraudulent transactions.
Legal practitioners advising PBs must ensure compliance with these amendments to reinforce customer trust and satisfaction. Understanding these regulatory updates will be vital for maintaining an effective compliance posture within the payments sector.
Citations
- Reserve Bank of India (Payments Banks - Responsible Business Conduct) Second Amendment Directions, 2026