RBI Says Digital Banking Cannot Be Made Mandatory
The Reserve Bank of India has clarified that banks cannot force customers to adopt digital banking in order to access other essential services. The clarification comes under the updated digital banking framework, which emphasises customer consent and financial inclusion.
Consent Required Before Enrolling Customers
According to the RBI, customers must give clear and explicit consent before being onboarded to digital banking platforms. Banks can request mobile numbers at the time of account opening for KYC updates and transaction alerts, but they cannot make internet or mobile banking a precondition for debit cards, passbooks or other basic services.
Stronger Fraud-Prevention Measures Introduced
The new norms require banks to strengthen risk-based monitoring systems before offering digital services. Institutions must demonstrate that adequate cybersecurity, surveillance, and transaction-monitoring mechanisms are in place to protect users, especially first-time digital adopters.
Traditional Banking Access Will Continue
The RBI emphasised that digital banking is an option, not an obligation. Customers who prefer physical branch services or do not have access to smartphones or stable internet can continue using regular banking channels without facing restrictions.
