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ARTICLE · 12 MAY 2021

RBI Issues Digital Payment Security Norms For Banks And NBFCs

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The Reserve Bank of India (RBI) in the Statement on Development and Regulatory Policies dated 4 December 2020 had proposed to set up a robust governance structure for digital payment...

IndiaFinance and Banking
Dinesh Gupta
Dinesh Gupta
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The Reserve Bank of India (RBI) in the Statement on Development and Regulatory Policies dated 4 December 2020 had proposed to set up a robust governance structure for digital payment products and to implement common minimum standards of security controls for channels like internet, mobile banking, and card payments. In line with the announcement, the RBI on 18 February 2021 issued the Reserve Bank of India (Digital Payment Security Controls) Directions, 2021 (Master Directions)1.

The Master Directions shall be applicable to 4 (four) categories of the regulated entities (REs): (i) Scheduled Commercial Banks (excluding Regional Rural Banks); (ii) Small Finance Banks; (iii) Payments Banks; and (iv) Credit card issuing Non-Banking Financial Companies. The Master Directions provide for a new set of regulatory guidelines for a safer and secure digital payment system. Set out below are the key features of the new guidelines:

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