The Reserve Bank of India (RBI) has issued comprehensive Master Directions on Cyber Resilience and Digital Payment Security Controls for non-bank Payment System Operators (PSOs), effective November 5, 2026. The framework mandates enhanced cybersecurity measures, incident reporting, and periodic audits to strengthen payment system integrity.
Cyber Resilience Framework for Non-Bank Payment Operators
The Reserve Bank of India (RBI) issued Master Directions on Cyber Resilience and Digital Payment Security Controls for non-bank Payment System Operators (PSOs) on November 5, 2026. The directive aims to strengthen the security architecture of digital payment systems by mandating robust cyber resilience standards across all authorised non-bank entities operating under RBI’s regulatory framework.
Key requirements include implementation of multi-layered security controls, real-time monitoring of cyber threats, mandatory reporting of cybersecurity incidents within six hours, and annual third-party audits of IT systems. PSOs must establish a dedicated Cyber Crisis Management Plan (CCMP) and conduct regular simulation exercises. The Master Directions also emphasize encryption, secure software development practices, and protection of customer data in line with RBI’s broader digital payment safety agenda.
According to RBI, the safety and security of payment systems remain a critical regulatory objective, especially as digital transaction volumes grow exponentially. Institutions are required to comply with these directions within six months of issuance. Non-compliance may attract supervisory action under Section 35A of the Banking Regulation Act, 1949. Legal practitioners advising fintech and payment companies must ensure alignment with this updated regime to mitigate systemic and compliance risks.
