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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

RBI issues RBI (Payments Banks - Undertaking of Financial Services) (Amendment) Directions, 2025

05-Dec-2025 | RBI/DOR/2025-26/137 DOR.RAUG.AUT.REC.No.345/24.01.041/2025-26

RBI issues RBI (Payments Banks - Undertaking of Financial Services) (Amendment) Directions, 2025 effective from 05th December 2025.

Key Highlights:
1. The amendment updates paragraph 4 of the Reserve Bank of India (Payments Banks - Undertaking of Financial Services) Directions, 2025 by revising key definitions and rules for third-party arrangements.
2. Agency Business is redefined: Payments Banks can act as agents of regulated third-party financial product providers (e.g., insurance, mutual funds, pension products) without taking any risk. Activities may include marketing, sales, grievance handling, and after-sales support.
3. Referral Services are clarified: Banks can only refer customers to third-party providers. They cannot participate in any processes, integrate TPPS into their systems, use their branding in documents, or host TPPS processes' only a simple redirect link is allowed.


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