RBI Circulars & Notifications – September 2025

Returns – Department of Payment and Settlement Systems (DPSS): Submission in CIMS

• RBI has launched its next-generation Centralised Information Management System (CIMS).
• Certain payment and settlement-related returns will now be reported through CIMS instead of legacy systems.
• Objective: Improve data accuracy, automation, and timeliness of RBI reporting.

Master Direction on Regulation of Payment Aggregators (PA), 2025

Issued: September 15, 2025
Effective: Immediate

Applicability

• Applies to:
  • Banks and Non-bank PAs (Online, Physical, Cross-Border)
  • Authorised Dealer (AD) Banks and Scheduled Commercial Banks (SCBs)

Key Definitions

• PA (Payment Aggregator): Collects payments from customers through various modes and settles to merchants.
  • Types:
    • PA-P: Physical
    • PA-O: Online
    • PA-CB: Cross-Border (Inward & Outward)
• PG (Payment Gateway): Provides only tech routing; does not handle funds.
• InCA / OCA: Inward and Outward Collection Accounts for PA-CB.
• Cash-on-Delivery (CoD): Cash collected at delivery of goods/services.

Authorisation & Capital Requirements

• Banks: No separate authorisation required.
• Non-Banks:
  • Must be an Indian company and apply through RBI portal.
  • Net Worth: ₹15 crore at application → ₹25 crore by end of 3rd FY post-authorisation.
  • Deadlines:
    • Existing PA-P must apply by Dec 31, 2025 or wind up by Feb 28, 2026.
    • Existing PA-O / PA-CB applicants must inform RBI of PA-P business by Dec 31, 2025.
  • Incomplete applications or those not meeting net worth criteria → returned.

Governance & Security

• Board must be fit & proper with no regulatory restrictions.
• Must have a Dispute Resolution Policy with fixed TAT and Grievance Redressal Officer (GRO) details online.
• Must comply with:
  • PCI-DSS / PCI-SSF standards
  • RBI Cyber Resilience & Digital Payment Security (2024)
  • Data Localisation Circular (Apr 6, 2018)
  • CERT-In audit annually

Operational Guidelines

• PAs can serve only contracted merchants; cannot run a marketplace.
• Refunds → must go to original payment mode.
• Outsourcing to PGs allowed under IT and Outsourcing norms.

Cross-Border Rules (PA-CB):

• Maintain separate Inward and Outward accounts; no netting or co-mingling.
• FX transactions routed only via AD Cat–I banks.
• Limit: ₹25 lakh per transaction.

KYC / Due Diligence

• Must follow RBI KYC Master Directions.
• Retrieve data from CKYCR (with consent).
• Simplified KYC for small merchants (turnover ≤ ₹40 lakh or export turnover ≤ ₹5 lakh):
  • PAN verification
  • Contact Point Verification (CPV)
  • One Officially Valid Document (OVD)

Participation of Standalone Primary Dealers (SPDs) in Non-Deliverable Rupee Derivative Markets

• Earlier: Only AD Cat–I Banks with IFSC Banking Units (IBUs) could trade in Non-Deliverable Derivative Contracts (NDDCs).
• Now: SPDs (AD Cat–III) can also transact in INR-based NDDCs with:
  • Residents
  • Non-residents
  • AD Cat–I IBUs
  • Overseas banks

RBI (Authentication Mechanisms for Digital Payment Transactions) Directions, 2025

Effective: April 1, 2026

Background

• 2FA (Two-Factor Authentication) has mostly relied on SMS OTP.
• New directions allow modern authentication using biometrics, tokens, or risk-based checks.

Key Points

• At least 2 factors of authentication (2FA) for all domestic digital payments.
• One factor must be dynamic (OTP, cryptogram, etc.).
• Compromise of one factor must not compromise others.
• Issuers liable for any customer loss due to weak authentication.
• Must comply with Digital Personal Data Protection Act, 2023.

Cross-Border Rules (by Oct 1, 2026):

• BIN registration with networks.
• Risk-based validation for one-time cross-border transactions.

Exemptions from 2FA:

1. Small-value contactless card transactions
2. Recurring e-mandates (except first)
3. PPI-MTS & Gift PPIs
4. NETC toll payments
5. Small offline digital payments
6. GDS/IATA corporate card transactions

Investment by Co-operative Banks in Shared Service Entity (SSE)

• RBI allows State Co-operative Banks (StCBs) and Central Co-operative Banks (CCBs) to invest in NABARD’s Shared Service Entity (SSE).
• Each bank can invest up to 5% of its capital + reserves.
• Exempted from:
  • Non-SLR investment limits
  • Unlisted investment restrictions
• Effective: Immediate

Special Clearing in CTS (Cheque Truncation System)

• RBI will hold special clearing sessions on October 3, 2025, before shifting to Continuous Clearing from October 4, 2025.
• Revised timing schedules shared with banks for transition readiness.

RBI (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025

Objective: Simplified, uniform process for quick settlement of deceased customer claims.

Deposit Accounts

• With Nominee:
  • Immediate payment to nominee; no legal documents needed.
  • Required: Claim form, death certificate, nominee KYC.
• Without Nominee:
  • Simplified up to ₹5 lakh (Co-op banks) / ₹15 lakh (others).
  • Beyond that: Legal documents required.
• With Will: Settled on Probate/Letter of Administration (if undisputed).
• Missing persons: FIR + non-traceable report acceptable for ≤ ₹1 lakh.

Lockers & Safe Custody

• With Nominee: Immediate access after verification; inventory done in presence of witnesses.
• Without Nominee: Simplified claim allowed if no dispute.

Timelines & Compensation

• Settlement: Within 15 days of submission.
• Compensation:
  • Deposits: Bank Rate + 4% p.a. for delays.
  • Lockers: ₹5,000/day for delay.

RBI (Interest Rate on Advances) Amendment Directions, 2025

• Banks can reduce loan spreads before 3-year reset period to retain borrowers.
• Floating-rate borrowers may switch to fixed rate during resets.
• Effective: October 1, 2025

RBI (Lending Against Gold & Silver Collateral) – 1st Amendment, 2025

• Not Permitted:
  • Loans for purchase/investment in gold, silver, or gold-backed assets.
• Permitted:
  • Working capital loans to manufacturers using gold/silver as raw material.
  • Only for productive use, not speculation.
• Applies to SCBs & Tier 3–4 UCBs.

Basel III – Perpetual Debt Instruments (PDIs) under AT1 Capital

• Based on latest audited or limited review financials.
• Aligns capital treatment across institutions.