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:
- Small-value contactless card transactions
- Recurring e-mandates (except first)
- PPI-MTS & Gift PPIs
- NETC toll payments
- Small offline digital payments
- 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
| Entity | Limit for PDIs (Foreign Currency / INR Bonds Overseas) |
| Scheduled Commercial Banks (excl. SFBs, PBs, RRBs) | 1.5% of Risk-Weighted Assets (RWA) |
| Small Finance Banks (SFBs) | 1.5% of RWA |
| Payments Banks (PBs) | 1.5% of RWA |
- Based on latest audited or limited review financials.
- Aligns capital treatment across institutions.