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Master Circular on KYC/AML/CFT Norms for Urban Co-operative Banks

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2011-12/79 · issued 01 Jul 2011 · ~2 min read
Quick answerRBI consolidated all KYC/AML/CFT guidelines for Primary (Urban) Co-operative Banks as of June 30, 2011. The circular mandates board-approved KYC policies, customer identification procedures, transaction monitoring, and reporting to FIU-IND under PMLA, 2002. Non-compliance may attract penalties under B R Act, 1949.

What changed

This master circular updates and consolidates all previous instructions on KYC/AML/CFT issued up to June 30, 2011, replacing the July 1, 2010 version. It incorporates FATF recommendations and Basel Committee's Customer Due Diligence paper, with detailed guidelines on customer acceptance, identification, risk management, and reporting of cash/suspicious transactions.

What it means for you

Urban co-operative banks must ensure their KYC policies are board-approved and align with updated AML/CFT standards. Banks need to implement robust customer identification procedures, monitor transactions for suspicious activity, and report to FIU-IND. Non-compliance can lead to penalties under the Banking Regulation Act, 1949.

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

Who it affects

Primary (Urban) Co-operative Banks, Board of Directors of Urban Co-operative Banks, Compliance and risk management teams, Branch managers and customer-facing staff

❓ Common questions

Regulatory timeline

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

What is the legal basis for these KYC guidelines?

The guidelines are issued under Section 35A of the Banking Regulation Act, 1949 (AACS). Non-compliance may attract penalties under relevant provisions of the Act.

Who is considered a 'customer' under this circular?

A customer includes any person or entity maintaining an account or business relationship with the bank, beneficial owners, beneficiaries of professional intermediaries, and anyone connected with a financial transaction posing reputational risk.

What are the key reporting requirements?

Banks must report cash transactions and suspicious transactions to the Financial Intelligence Unit – India (FIU-IND) using prescribed formats, and maintain records as per PMLA, 2002.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1494: UBD.BPD.(PCB).MC.No.16/12.05.001/2011-2012 — "Master Circular on Know Your Customer (KYC) Norms / Anti-Money Laundering (AML) Standards / Combating of Financi”
📜 Read the original circular — full text as issued by RBI
RBI/2011-12/79 UBD.BPD.(PCB).MC.No. 16/12.05.001/2011-2012 July 1, 2011 Chief Executive Officers of All Primary (Urban) Co-operative Banks Dear Sir Master Circular on Know Your Customer (KYC) Norms / Anti-Money Laundering (AML) Standards / Combating of Financing of Terrorism (CFT)/Obligation of banks under Prevention of Money Laundering Act, 2002 Please refer to our Master Circular UBD.BPD. (PCB).MC.No.16 /12.05.001/2010-11 dated July 1, 2010 on the captioned subject (available at RBI website www.rbi.org.in ). The enclosed Master Circular consolidates and updates all the instructions / guidelines issued on the subject up to June 30, 2011 and mentioned in the appendix . Yours faithfully (Uma Shankar) Chief General Manager, Structure Paragraph No.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/79 · issued 01 Jul 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=6545&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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