Synopsis: The RBI has released new digital banking guidelines clearly stating that banks cannot force customers to adopt digital services like Internet Banking, Mobile Apps, or UPI as a condition for availing any banking facility.
RBI Issues Final Guidelines on Digital Banking Channels
The Reserve Bank of India (RBI) on Friday released its final guidelines on digital banking services, strengthening consumer rights and ensuring that banks cannot make digital adoption mandatory.
The regulator clarified that customers cannot be forced to accept digital services as a prerequisite for accessing any banking facility — including debit card issuance or account servicing.
Digital services must be activated only after obtaining the explicit consent of the customer.
The circular noted:
“While opting for a bundle of services may be convenient for customers, the choice of availing digital facilities shall rest entirely with the customer.”
Push Toward Digital-Only Banking Faces Scrutiny
RBI’s intervention comes amid rising concerns that some banks were aggressively pushing customers toward digital channels while limiting access to physical branches.
Reports indicated that banks often activated mobile banking, Internet banking, or UPI by default during account opening.
To prevent coercion, the RBI has mandated that:
- Customers may decline digital banking services through a simple written request
- No banking service can be linked to compulsory digital adoption
- Offline and branch-based services must remain fully accessible and easy to use
The regulator also took note of complaints from senior citizens, rural customers, and people uncomfortable with digital interfaces who were unable to access essential banking services without enrolling in digital platforms.
Cybersecurity Measures Strengthened
As digital transactions grow exponentially, RBI has tightened cyber risk controls.
Banks must now implement real-time surveillance to monitor suspicious transactions and strengthen security frameworks.
New cybersecurity standards include:
- Instant alerts for unusual or potentially fraudulent transactions
- Enhanced data privacy safeguards for customer information
- Clear communication of digital banking risks and customer obligations
The RBI emphasised that no consumer should feel misled or coerced into using a digital channel they are not comfortable with.
Protecting Consumer Rights in a Rapidly Digitising Economy
Industry observers believe the new guidelines strike a balance between India’s fast-growing digital economy and the need for financial inclusion.
While India leads the world in digital payments, the RBI aims to ensure that the elderly, rural, and digitally inexperienced customers are not left behind.
A senior official from a major PSU bank commented:
“Technology is transformative, but it cannot be imposed. Customers must always have alternatives.”
Customer Convenience Must Drive Digital Adoption
As India enters a new phase of its Digital India mission, the RBI aims to ensure that convenience—not compulsion drives digital growth.
The regulator expects smoother customer experience, stronger security, and improved trust once all banks fully comply with the new rules.
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