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RBI Eases KYC Norms for Money Changers

Current · Source: Reserve Bank of India · RBI/2012-13/294 · issued 15 Nov 2012 · ~2 min read

Quick answerRBI has relaxed KYC document requirements for money changing transactions, allowing FFMCs to accept a wider range of address proofs like telephone bills or bank statements, easing compliance for foreign tourists and non-residents.

The rule, in the simplest words

Banks and money changers can now accept a single document for address verification, such as a telephone bill or bank statement.
Foreign tourists can use a passport copy, visa stamped by Indian immigration, and a signed declaration of permanent address if they cannot provide other documents.
Money changers and banks must update their internal policies and train staff on the new guidelines.

How it plays out — a real example

A KYC & compliance officer in Indore, Rohan, helps a foreign tourist, Mr. Lee, who wants to exchange his currency. Mr. Lee doesn't have an Indian address, so Rohan uses his passport copy, visa, and a signed declaration to verify his address. Rohan follows the RBI's new guidelines and completes the transaction smoothly.

What changed

RBI amended instructions in F-Part-II of the Annex to A.P. (Dir Series) Circular No. 17 dated November 27, 2009, effective November 15, 2012, based on representations from FFMCs. The revised guidelines clarify that any one document from the existing list (e.g., telephone bill, bank statement) suffices for address proof, and add a provision for foreign tourists: if passport lacks address or tourist cannot provide address proof, APs may obtain passport copy, visa stamped by Indian immigration, and a signed declaration of permanent address.

What it means for you

Banks and FFMCs can now accept a single document for address verification, as per the existing list, with added flexibility for foreign tourists. This addresses difficulties in obtaining documents beyond passports, as noted in the source.

What you must do

Update internal KYC policies to reflect the revised document list for money changing transactions.
Train staff on accepting any one valid address proof from the expanded list (e.g., telephone bill, bank statement).
Ensure agents and franchisees are notified and comply with the revised guidelines.
Advise your Principal Officer to acknowledge receipt of this circular.

Who it affects

Full Fledged Money Changers (FFMCs), Authorised Persons in foreign exchange, Banks handling forex transactions, Agents and franchisees of Authorised Persons

❓ Common questions

Regulatory timeline

Stated effective date effective November 15, 2012
Decoded by BankPulse 2026-06-18 17:15 IST

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

What documents are now acceptable for address proof under the revised KYC norms?

Any one document from the list: telephone bill, bank account statement, letter from a recognized public authority, electricity bill, ration card, or letter from employer, provided it satisfies the Authorised Person.

Do these relaxed norms apply to foreign tourists?

Yes, for foreign tourists, copies of passport containing identification and address details may be accepted as both identity and address proof. Additionally, a copy of the visa of non-residents, duly stamped by Indian Immigration authorities, may be obtained and kept on record. If the passport does not contain an address or the tourist cannot produce address proof, APs may obtain a copy of passport and visa stamped by Indian Immigration and a signed declaration from the tourist regarding the permanent address.

Are agents and franchisees of Authorised Persons covered by these guidelines?

Yes, the guidelines apply mutatis mutandis to all agents and franchisees, and the franchiser is solely responsible for ensuring their compliance.

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

RBI/2012-13/294
 A.P. (DIR Series) Circular No. 51
 November 15, 2012
 To
 All Authorised Persons in Foreign Exchange
 Madam/Sir,
 Know Your Customer (KYC) norms/Anti-Money Laundering (AML) standards / Combating the Financing of Terrorism (CFT) Obligation of Authorised Persons under Prevention of Money Laundering Act, (PMLA), 2002, as amended by Prevention of Money Laundering (Amendment) Act, 2009 Money changing activities
 Attention of Authorised Persons is invited to F-Part-II of the Annex to the A.P. (Dir Series) Circular No. 17 [A.P. (FL/RL Series) Circular No. 04] dated November 27, 2009, as amended by the A.P. (Dir Series) Circular No. 60 dated December 22, 2011 .
 2.Based on several representations received from Full Fledged Money Changers (FFMCs), regarding difficulties in obtaining documents other than passport, and taking into account the procedure followed for money changing in other countries, it has been decided to amend certain instructions contained in the aforementioned Part. The amended instructions are given in the Annex .
 3. All the other instructions contained in the A.P. (DIR Series) Circular No. 17 [A.P. (FL/RL Series) Circular No. 04] dated November 27, 2009 , as amended from time to time shall remain unchanged.
 4. Authorised Persons may bring the contents of this circular to the notice of their constituents concerned.
 5. These guidelines are also applicable mutatis mutandis to all agents/ franchisees of Authorised Persons and it will be the sole responsibility of the franchisers to ensure that their agents / franchisees also adhere to these guidelines.
 6. Please advise your Principal Officer to acknowledge receipt of this circular letter.
 7. The directions contained in this Circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999)and also under the, Prevention of Money Laundering Act, (PMLA), 2002, as amended by Prevention of Money Laundering (Amendment) Act, 2009 and Prevention of Money-Laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005 as amended from time to time and are without prejudice to permission /approvals, if any, required under any other law.
 Yours faithfully,
 Rudra Narayan Kar 
 Chief General Manager Annex
 [Annex to A.P. (DIR Series) Circular No. dated November , 2012]
 Customer Identification Procedure Features to be verified and documents that may be obtained from customers
 Extant Guidelines

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/294 · issued 15 Nov 2012. The plain-English explanation above is BankPulse’s own independent summary.

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Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (Full Fledged Money Changers (FFMCs), Authorised Persons in foreign exchange, Banks handling forex transactions, Agents and franchisees of Authorised Persons), your first concrete step on “RBI Eases KYC Norms for Money Changers” is: “Update internal KYC policies to reflect the revised document list for money changing transactions.” (RBI issued this 15 Nov 2012).

Circular: RBI/2012-13/294 -- RBI Eases KYC Norms for Money Changers
Issued: 15 Nov 2012
Action required: Update internal KYC policies to reflect the revised document list for money changing transactions.
Action required: Train staff on accepting any one valid address proof from the expanded list (e.g., telephone bill, bank statement).
Action required: Ensure agents and franchisees are notified and comply with the revised guidelines.
Action required: Advise your Principal Officer to acknowledge receipt of this circular.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________

Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=7693&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.