Regulatory Alerts2026-06-24
Reserve Bank of India (Payments Banks - Responsible Business Conduct) Second Amendment Directions, 2026
The Reserve Bank of India issued the Second Amendment Directions, 2026, to revise liability limits and customer protection protocols for Payments Banks regarding unauthorized electronic banking transactions. The directions establish a zero-liability framework for customers in cases of bank negligence or third-party breaches reported within five days, while defining specific customer negligence scenarios that may incur liability. Additionally, the RBI introduced a compensation mechanism for small-value fraud losses up to ₹50,000, funded by a shared contribution model involving the Reserve Bank, the customer's bank, and the beneficiary bank.
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