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RBI Directs Payment Operators on FATF AML/CFT Deficiencies

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2010-11/464 · issued 08 Apr 2011 · ~1 min read

Quick answerRBI has directed all authorised payment system operators to consider the FATF statement on jurisdictions with strategic AML/CFT deficiencies. This reinforces compliance obligations under the PSS Act, 2007.

What changed

RBI issued a circular on April 8, 2011, referencing an earlier letter from January 18, 2011, and a FATF statement from February 25, 2011. It advises payment system operators to consider the information in the enclosed FATF statement regarding jurisdictions with AML/CFT deficiencies.

What it means for you

Payment system operators must stay vigilant about AML/CFT risks linked to listed jurisdictions. This may require enhanced due diligence or transaction monitoring for cross-border flows. Non-compliance could expose operators to regulatory scrutiny.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Review the enclosed FATF statement and identify any jurisdictions with strategic AML/CFT deficiencies.
Ensure your AML/CFT policies address risks from transactions involving those jurisdictions.
Have your Nodal Officer or Principal Officer acknowledge receipt of this circular.
Update internal compliance procedures to align with FATF recommendations.

Who it affects

All payment system operators authorised under the PSS Act, 2007, Nodal Officers and Principal Officers of these operators

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-19 01:56 IST
Status change: withdrawn 03 Aug 2026, 04:00 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the purpose of this RBI circular?

It directs payment system operators to consider a FATF statement on jurisdictions with strategic AML/CFT deficiencies, ensuring compliance with international standards.

Who needs to acknowledge receipt of this circular?

The Nodal Officer or Principal Officer of each authorised payment system operator must acknowledge receipt.

What should operators do with the FATF statement?

Operators should consider the information in the statement and assess risks related to transactions involving the listed jurisdictions.

📜 Read the original circular — full text as issued by RBI

RBI/2010-11/464
 DPSS. CO. AD. No 2317 /02.27.005/2010-11 
 April 8, 2011 
 All Payment System Operators Authorised under the PSS Act, 2007
 Dear Sir 
 Anti- Money Laundering (AML) / Combating of Financing of Terrorism (CFT)- Standards 
 Please refer to our letter DPSS.CO.AD.No. 1568 /02.27.005/2010-11 dated January 18,  2011 forwarding the Financial Action Task Force (FATF) Statement identifying   a list of jurisdictions which have strategic AML/CFT deficiencies.
 2. FATF, has further issued a Statement on February 25, 2011 ( copy enclosed ) calling upon jurisdictions listed in the Statement to complete the implementation of their action plan within the timeframe. The FATF, in the Statement has called upon its members to consider the information given in the Statement.
 3. All the Payment System Operators authorised under the Payment and Settlement Systems Act, 2007 are accordingly advised to consider the information contained in the enclosed Statement.
 4. Nodal Officer/Principal Officer should acknowledge receipt of this circular letter.
 Yours faithfully, 
   (K. Sivaraman ) 
 General Manager 
 Encl: As above

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/464 · issued 08 Apr 2011. The plain-English explanation above is BankPulse’s own independent summary.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6329&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.