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RBI Updates Wire Transfer KYC Rules, Aligns with FATF

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2023-24/25 · issued 04 May 2023 · ~1 min read

Quick answerRBI has amended the Master Direction on KYC to update wire transfer instructions, effective immediately. The changes align Section 64 with FATF recommendations and add new definitions. All regulated entities must comply from May 4, 2023.

What changed

RBI amended the Master Direction on KYC dated February 25, 2016, specifically updating Section 64 on wire transfers. The revised instructions align with relevant FATF recommendations and include new definitions in Section 2. The amendments took immediate effect from May 4, 2023.

What it means for you

Banks and other regulated entities must update their wire transfer processes to meet the revised KYC requirements. The alignment with FATF standards indicates a push for stronger anti-money laundering controls. Non-compliance could lead to regulatory scrutiny or penalties.

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

Review the amended Section 64 of the KYC Master Direction and update internal wire transfer policies accordingly.
Ensure wire transfer systems capture and transmit required originator and beneficiary information as per new rules.
Train compliance and operations teams on the revised definitions and FATF-aligned requirements.
Implement changes immediately as the circular is effective from May 4, 2023.

Who it affects

All regulated entities (banks, NBFCs, payment system operators), Compliance and AML teams, Wire transfer processing departments

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-18 04:42 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn 03 Aug 2026, 04:00 IST

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 wire transfer KYC amendments?

The amendments came into force with immediate effect from May 4, 2023, as stated in the circular.

Which section of the KYC Master Direction has been updated?

Section 64, which deals with wire transfer instructions, has been amended. New definitions have also been added to Section 2.

Why is RBI aligning wire transfer rules with FATF recommendations?

To strengthen anti-money laundering and counter-terrorist financing measures, ensuring Indian regulations meet global standards.

📜 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 #178: DOR.AML.REC.13/14.01.001/2023-24 — "Amendment to the Master Direction (MD) on KYC - Instructions on Wire Transfer" dated May 4, 2023”

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

RBI/2023-24/25
 DOR.AML.REC.13/14.01.001/2023-24
 May 4, 2023
 The Chairpersons/ CEOs of all the Regulated Entities
 Dear Sir/Madam,
 Amendment to the Master Direction (MD) on KYC – Instructions on Wire Transfer
 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), inter alia, have to undertake certain measures while dealing with the Wire Transfer.
 2. In this regard, on a review, it has been decided to amend the MD on KYC to update the instructions on Wire Transfer (Section 64 of the MD), also aligning the same with the relevant FATF Recommendation. The amended instructions of Section 64 of the MD on KYC are provided in the annexure for reference. Further, definitions of the relevant terms used in the amended Wire Transfer instructions are being added in Section 2 (“Definitions”) of the MD on KYC.
 3. The amended provisions shall come into force with immediate effect.
 Yours faithfully,
 (Santosh Kumar Panigrahy)
 Chief General Manager
 Enclosure: As above

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2023-24/25 · issued 04 May 2023. 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=12498&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.