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RBI Updates AML/CFT Standards for Payment Operators

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2012-13/193 · issued 06 Sep 2012 · ~1 min read
Quick answerRBI directs all PSS Act-authorized payment system operators to review FATF's June 2012 updated AML/CFT statement and compliance document, ensuring alignment with global standards without restricting legitimate trade.

What changed

RBI issued a circular on September 6, 2012, referencing FATF's June 22, 2012 updates to its AML/CFT statement and compliance document. Payment system operators must now consider the latest FATF information on high-risk and non-cooperative jurisdictions.

What it means for you

Payment operators need to stay current with FATF's evolving AML/CFT guidance to mitigate risks from deficient regimes. This does not ban legitimate transactions but requires enhanced due diligence where flagged. 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

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

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 legitimate trade and business transactions with those jurisdictions are not precluded.

What is the source of the updated AML/CFT standards?

The Financial Action Task Force (FATF) updated its statement and compliance document on June 22, 2012, which RBI has enclosed for reference.

📜 Read the original circular — full text as issued by RBI
RBI/2012-13/193 DPSS. CO. AD. No. 426/02.27.005/2012-13 September 6, 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 circular DPSS.CO.AD.No.1877 /02.27.005/2011-12 dated April 11, 2012 on risk arising from the deficiencies in AML/CFT regime of certain jurisdictions. 2. Financial Action Task Force (FATF) has updated its Statement on the subject and document ‘Improving Global AML/CFT Compliance: on-going processes’ on June 22, 2012 ( copy enclosed ). The statement / document can be accessed from the following URL also: http://www.fatf-gafi.org/documents/repository/fatfpublicstatement-22june2012.html and http://www.fatf-gafi.org/topics/high-riskandnon-cooperativejurisdictions/documents/improvingglobalamlcftcomplianceon-goingprocess-22june2012.html 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. Nodal Officer/Principal Officer may please 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/2012-13/193 · issued 06 Sep 2012. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=7550&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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