Reserve Bank of India (Payments Banks – Concurrent Audit) Directions, 2026

The Reserve Bank of India has issued the Reserve Bank of India (Payments Banks – Concurrent Audit) Supervisory Directions, 2026, establishing a framework for concurrent audit applicable to Payments Banks. The Directions aim to strengthen internal controls, ensure timely identification of errors and irregularities, and enhance preventive measures against fraudulent transactions. They prescribe the role of the Audit Committee of the Board (ACB), scope and coverage of concurrent audit, appointment and tenure of auditors, reporting requirements, and accountability mechanisms. The Directions require risk-based audit coverage of key areas including cash transactions, KYC/AML compliance, reconciliation, treasury operations, card business, employee conduct, and compliance with RBI regulations. Payments Banks must ensure independence of auditors, timely reporting of audit findings, corrective actions, and continuous improvement of the concurrent audit framework. The Directions shall come into effect immediately upon issuance and replace previous instructions relating to concurrent audit for Payments Banks.