What changed
RBI repealed the 2016 Master Direction on KYC (DBR.AML.BC.No.81/14.01.001/2015-16) effective November 28, 2025. All existing circulars for payment system providers and participants now reference the new 'Reserve Bank of India (Commercial Banks – Know Your Customer) Directions, 2025' instead. The annexure updates specific paragraphs in PPI and payment aggregator master directions to reflect this change.
What it means for you
Payment system providers must immediately align their KYC/AML/CFT policies with the 2025 commercial bank KYC directions, not the old 2016 version. This ensures consistency across regulated entities but may require updates to internal procedures, documentation, and training. The change is effective immediately, so compliance gaps must be addressed without delay.
What you must do
- Update all internal KYC/AML/CFT policies and procedures to reference the 2025 KYC Directions instead of the 2016 Master Direction.
- Revise customer onboarding forms, digital KYC processes, and V-CIP protocols to align with definitions in the new directions.
- Notify compliance and operations teams about the change and conduct refresher training on the updated KYC framework.
- Review and amend any contracts or service agreements that cite the old 2016 KYC Master Direction.
Who it affects
Payment system providers (PSPs), Payment system participants, Prepaid payment instrument (PPI) issuers, Payment aggregators (PAs)
Is the 2016 KYC Master Direction still valid for payment systems?
No, RBI repealed it with immediate effect on November 28, 2025. All references must now be to the 'Reserve Bank of India (Commercial Banks – Know Your Customer) Directions, 2025'.
Do I need to redo customer KYC for existing customers?
The circular does not mandate re-KYC for existing customers. However, you must ensure all new onboarding and ongoing KYC processes follow the 2025 Directions.
Which specific documents are affected by this change?
The annexure updates PPI Master Directions (paragraphs 6.1, 9.1(i)b, 9.1(ii)b) and Payment Aggregator Master Direction (paragraph 4k) to reference the new KYC Directions.