RBI updates KYC Master Direction with new PML Rules, UAPA, WMD Act, FCRA section
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2023-24/69 · issued 17 Oct 2023 · ~2 min read
Quick answerRBI has amended its KYC Master Direction to align with recent PML Rules amendments, updated UAPA and WMD Act orders, FATF recommendations, and added a new section on FCRA. All regulated entities must comply immediately.
What changed
RBI updated the KYC Master Direction to reflect amendments to the PML Rules via Government notifications dated September 4 and October 17, 2023. It also revised Annex II for UAPA changes and replaced the WMD Act order in Annex III with a new one dated September 1, 2023. A new Section 55A on FCRA was added, and other instructions were updated per FATF recommendations.
What it means for you
Banks and other regulated entities must update their KYC policies and procedures to incorporate the latest legal and regulatory changes, including enhanced due diligence for entities linked to UAPA and WMD Act. The addition of FCRA provisions means lenders dealing with foreign contribution accounts need to align their CDD processes accordingly. Immediate compliance is required, so internal audits and training programs should be revised without delay.
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 and update your KYC policy to incorporate the amendments to PML Rules, UAPA, and WMD Act orders.
Add a new section on FCRA compliance in your KYC procedures as per Section 55A of the MD.
Ensure all customer due diligence processes align with updated FATF recommendations.
Communicate these changes to all relevant branches and compliance teams with immediate effect.
Conduct a gap analysis and update internal systems and training materials accordingly.
Who it affects
All regulated entities under RBI (banks, NBFCs, payment system operators, etc.), Compliance and KYC teams, Internal audit and risk management departments, Customers dealing with foreign contributions (FCRA)
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 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 KYC amendments?
The amended provisions in the Master Direction on KYC come into force with immediate effect from October 17, 2023.
Do I need to update my KYC software for the new FCRA section?
Yes, you must incorporate the new Section 55A on FCRA into your KYC systems and processes to ensure proper due diligence for customers handling foreign contributions.
Are there any changes to the list of designated individuals/entities under UAPA?
Yes, Annex II of the KYC Master Direction has been updated to reflect the corrigendum dated August 29, 2023, to the Government of India Order related to UAPA.
📜 This document’s life story (3 recorded events, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #162: DOR.AML.REC.44/14.01.001/2023-24 — "Amendment to the Master Direction (MD) on KYC" dated October 17, 2023”
📜 Read the original circular — full text as issued by RBI
RBI/2023-24/69
DOR.AML.REC.44/14.01.001/2023-24
October 17, 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) Update certain instructions considering amendments to the PML Rules vide Government notifications dated September 4, 2023 and October 17, 2023;
(b) Update Annex II of the MD considering the changes to Government of India Order related to Unlawful Activities (Prevention) Act (UAPA), 1967, vide corrigendum dated August 29, 2023;
(c) Update Annex III of the MD by replacing the Government of India Order dated January 30, 2023, related to Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 (WMD Act, 2005) with the Government of India Order dated September 1, 2023 (which has been issued by the Government in suppression of the earlier WMD Act Order dated January 30, 2023), on the matter;
(d) Update certain instructions in accordance with the FATF Recommendations;
(e) Add a new Section 55A, on FCRA, in the MD on KYC; and
(f) Update certain other 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/2023-24/69 · issued 17 Oct 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=12549&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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