The Reserve Bank of India has amended directions for payments banks to enhance customer protection in electronic transactions. This represents a significant step towards safeguarding customer interests.
RBI Updates Responsible Business Conduct Directions for PBs
On June 24, 2026, the Reserve Bank of India (RBI) issued the Reserve Bank of India (Payments Banks - Responsible Business Conduct) Second Amendment Directions, 2026. This amendment consolidates guidelines that address customer liability in unauthorized electronic transactions for payments banks.
The direction reinforces the responsibility of payments banks (PBs) in managing unauthorized electronic transactions. By establishing clear liability standards, the RBI aims to enhance consumer protection and foster transparency in banking operations.
Legal practitioners should advise payments banks on compliance with these updated directions ensuring the policies align with consumer protection norms in electronic transactions. Awareness of these changes is critical for maintaining trust and security in customer relationships.
