RBI Updates AML/CFT Standards for Payment System Operators
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2011-12/394 · issued 09 Feb 2012 · ~1 min read
Quick answerRBI directs all PSS Act-authorized payment system operators to consider FATF's updated October 2011 statement on AML/CFT risks from certain jurisdictions, without blocking legitimate trade.
What changed
RBI issued a circular on February 9, 2012, referencing earlier August 2011 advisories on AML/CFT deficiencies. It now requires operators to factor in FATF's updated October 28, 2011 statement, which was enclosed with the circular.
What it means for you
Payment system operators must stay alert to evolving international AML/CFT standards and adjust their risk assessments accordingly. The circular clarifies that these updates do not prohibit legitimate business with the listed jurisdictions, so lenders can continue normal trade relationships while enhancing due diligence.
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 from October 28, 2011, and update your AML/CFT risk frameworks accordingly.
Ensure your nodal or principal officer acknowledges receipt of this circular as instructed.
Do not restrict legitimate trade or business transactions with the identified jurisdictions solely based on this advisory.
Who it affects
All payment system operators authorized under the Payment and Settlement Systems Act, 2007, Nodal officers and principal officers of these operators
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 21:47 IST
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Does this circular ban transactions with certain countries?
No, it explicitly states that it does not preclude legitimate trade and business transactions with the jurisdictions mentioned in FATF's statement.
What should I do with the enclosed FATF statement?
You must consider the information in the statement when updating your AML/CFT policies and ensure your nodal officer acknowledges receipt of the circular.
📜 Read the original circular — full text as issued by RBI
RBI/2011-12/394
DPSS. CO. AD. No 1425/02.27.005/2011-12
February 9, 2012
Chief Executive Officers of
All the 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 circulars DPSS.CO.AD.No .313 and 314 /02.27.005/2011-12 dated August 18, 2011 on risk arising from the deficiencies in AML/CFT regime of certain jurisdictions.
2. Financial Action Task Force (FATF) has updated its Statement on October 28, 2011 on the subject ( copy enclosed ).
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. This, however, does not preclude Payment System Operators from legitimate trade and business transactions with these countries and jurisdictions.
5. Please advise Nodal Officer/Principal Officer to acknowledge receipt of this circular.
Yours faithfully
(K C Anand )
Deputy General Manager
Encl: As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/394 · issued 09 Feb 2012. 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=6999&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.
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