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RBI amends KYC Master Direction: WMD Act, FATF alignment

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2023-24/24 · issued 28 Apr 2023 · ~1 min read
Quick answerRBI has amended the KYC Master Direction to align with recent PMLA rule changes, incorporate WMD Act Section 12A procedures, update FATF recommendations, and refine existing instructions. Effective immediately.

What changed

RBI amended the KYC Master Direction to align with recent changes in the Prevention of Money Laundering (Maintenance of Records) Rules, 2005. It also incorporated procedures from a Government Order dated January 30, 2023, regarding Section 12A of the Weapons of Mass Destruction Act. Additionally, instructions were updated per FATF recommendations and some existing provisions were refined after review.

What it means for you

Banks and other regulated entities must update their KYC policies and procedures to comply with the amended Master Direction. The changes require enhanced due diligence measures related to money laundering and proliferation financing risks, particularly concerning weapons of mass destruction. Immediate implementation is needed to avoid compliance gaps.

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 regulated entities (banks, NBFCs, payment system operators, etc.), Compliance officers and KYC teams, Senior management responsible for AML/CFT policies

❓ 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 effective date of these KYC amendments?

The amended provisions in the Master Direction on KYC shall come into force with immediate effect from the date of the circular (April 28, 2023).

📜 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Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)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 #179: DOR.AML.REC.111/14.01.001/2023-24 — "Amendment to the Master Direction (MD) on KYC" dated April 28, 2023”
📜 Read the original circular — full text as issued by RBI
RBI/2023-24/24 DOR.AML.REC.111/14.01.001/2023-24 April 28, 2023 The Chairpersons/ CEOs of all the Regulated Entities Dear Sir/Madam, Amendment to the Master Direction (MD) on KYC Please refer to the Master Direction (MD) on KYC dated February 25, 2016 , as amended from time to time, in terms of which Regulated Entities (REs) have to undertake Customer Due Diligence (CDD), as per the process laid out therein, for their customers. 2. In this regard, on a review, it has been decided to amend the MD on KYC to (a) align the instructions with the recent amendments carried out in the Prevention of Money Laundering (Maintenance of Records) Rules, 2005, (b) incorporate instructions in terms of the Government Order dated January 30, 2023, titled “Procedure for Implementation of Section 12A of the Weapons of Mass Destruction (WMD) and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 (WMD Act, 2005)”; (c) update certain instructions in accordance with FATF Recommendations; and (d) refine certain extant instructions post review. The changes carried out in the MD in this regard are provided in Annexure . 3. Accordingly, the relevant Sections of the MD on KYC are hereby amended to reflect the changes furnished in Annexure. The amended provisions in the MD shall come into force with immediate effect. Yours faithfully, (Santosh Kumar Panigrahy) Chief General Manager Encl: As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2023-24/24 · issued 28 Apr 2023. 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=12497&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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