HomeCirculars › RBI/2013-14/257

RBI Updates AML/CFT Standards for Payment Operators

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/257 · issued 13 Sep 2013 · ~1 min read
Quick answerRBI directs all PSS Act-authorized payment system operators to review FATF's updated June 2013 statement on AML/CFT compliance, focusing on high-risk jurisdictions, without restricting legitimate trade.

What changed

FATF updated its public statement and compliance document on June 21, 2013, regarding AML/CFT deficiencies in certain jurisdictions. RBI now requires all payment system operators to consider this updated information in their compliance frameworks.

What it means for you

Payment operators must align their AML/CFT procedures with FATF's latest findings to mitigate risks from jurisdictions with weak regimes. This does not ban transactions but demands enhanced due diligence. 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

Payment system operators authorized under PSS Act, 2007, Nodal and Principal Officers of payment 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 these jurisdictions are not precluded.

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

The Financial Action Task Force (FATF) updated its statement and compliance document on June 21, 2013, which is referenced in the circular.

📜 Read the original circular — full text as issued by RBI
RBI/2013-14/257 DPSS. CO. AD. No. 626/02.27.005/2013-14 September 13, 2013 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.2051 /02.27.005/2012-13 dated May 8, 2013 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 Process’ on June 21, 2013 ( copy enclosed ). The statement / document can be accessed from the following URLs also: http://www.fatf-gafi.org/topics/key/public-statement-june-2013.html and http://www.fatf-gafi.org/topics/high-riskandnon-cooperativejurisdictions/documents/compliance-june-2013.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. This, however, does not preclude Payment System Operators from legitimate trade and business transactions with these countries and jurisdictions. 4. Nodal Officer/Principal Officer may please acknowledge receipt of this circular. Yours faithfully (K C Anand) General Manager Encl: As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/257 · issued 13 Sep 2013. The plain-English explanation above is BankPulse’s own independent summary.
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Topics: Digital Payments / UPI
Key dataSee the live numbers behind this topic: RBI Penalty Tracker, Credit & Deposit Growth — updated from official RBI data.
Key termsPlain-English definitions of terms in this circular — see the full Indian banking glossary. UPI · KYC / AML · Deposit insurance (DICGC) · NEFT / RTGS

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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8414&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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