Reserve Bank of India (Payments Banks - Internal Audit Function) Directions, 2026.

The RBI (Payments Banks – Internal Audit Function) Directions, 2026 provide a framework for implementing an effective Risk-Based Internal Audit (RBIA) system in Payments Banks. The Directions require PBs to maintain a Board-approved Internal Audit Policy, risk assessment methodology, and Annual Audit Plan. The Board and Senior Management are responsible for ensuring the independence, effectiveness, and proper functioning of the Internal Audit Function. The Internal Audit Department must independently assess risks, review internal controls, ensure regulatory compliance, identify fraud and operational risks, and monitor corrective actions through a risk-based approach. Payments Banks must ensure adequate resources, skilled auditors, and an independent Head of Internal Audit (HIA) with direct access to the Audit Committee/Board. Outsourcing of the Internal Audit Function is prohibited, except for engaging external experts where required under proper oversight. The Directions aim to strengthen governance, risk management, internal controls, and compliance frameworks of Payments Banks.