The Reserve Bank of India (Urban Co-operative Banks – Digital Payment Security Controls)
Directions, 2026 provide a comprehensive framework for securing digital payment products
and services offered by Urban Co-operative Banks (UCBs). The Directions apply to all UCBs
and cover mobile banking, internet banking, OTP services, PIN services, transaction facilities,
and other digital payment channels provided directly or through RBI-authorised payment
systems.
The Directions require UCBs to establish Board-approved digital payment security policies,
conduct regular risk assessments, implement strong cybersecurity controls, and ensure
protection of customer data and transaction integrity. UCBs must adopt measures such as
multi-factor authentication, encryption, fraud monitoring, vulnerability assessments,
penetration testing, secure application development, incident response mechanisms, and
effective reconciliation systems.
Specific security requirements are prescribed for internet banking, mobile applications, and
card payment systems, including secure authentication, device protection, application
security, card data protection, and compliance with applicable security standards. UCBs
must also ensure customer awareness, grievance redressal mechanisms, and timely
reporting of fraudulent transactions. The Directions aim to strengthen digital payment
security, enhance operational resilience, and protect customers from cyber risks and frauds.
