RBI Replaces 2016 KYC Master Direction for Payment Systems
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2025-26/101 · issued 28 Nov 2025 · ~2 min read
Quick answerRBI has repealed the 2016 KYC Master Direction for payment systems, replacing all references with the new 'RBI (Commercial Banks – KYC) Directions, 2025'. This applies to PPIs and payment aggregators immediately, aligning their KYC/AML/CFT norms with the updated commercial bank framework.
The rule, in the simplest words
RBI has replaced the 2016 KYC Master Direction with the 'RBI (Commercial Banks – KYC) Directions, 2025'.
Payment system providers must update their KYC/AML/CFT policies to align with the new 2025 commercial bank KYC directions.
All references to the old 2016 Master Direction must be replaced with the new 2025 directions, effective immediately.
How it plays out — a real example
As a KYC & compliance officer in Indore, I need to update our internal procedures to reference the new 2025 KYC Directions. This means revising our customer onboarding forms and digital KYC processes to ensure they align with the updated definitions in the new directions. I will also need to notify our compliance and operations teams about the change and conduct refresher training on the updated KYC framework to ensure we remain compliant with RBI regulations.
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RBI repealed the 2016 Master Direction on KYC (DBR.AML.BC.No.81/14.01.001/2015-16) effective November 28, 2025.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.
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
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)
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
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.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
RBI’s words: “The Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Directions, 2025 , are amended as provided below.”
📜 Read the original circular — full text as issued by RBI
RBI/2025-26/101
CO.DPSS.POLC.No.S-955/02-30-010/2025-26
November 28, 2025
All Payment System Providers and Payment System Participants
Madam / Sir,
Compliance with Know Your Customer (KYC) norms
The Reserve Bank has, today, repealed the RBI Master Direction DBR.AML.BC.No.81/14.01.001/2015-16 dated February 25, 2016 (as updated from time to time) with immediate effect.
2. In view of the above, all references to the said Master Direction in instructions to Payment System Providers and Payment System Participants shall be read as reference to ' Reserve Bank of India (Commercial Banks – Know Your Customer) Directions, 2025 '. A list of changes carried out in various circulars is annexed .
3. This direction is issued under Section 18 read with Section 10 (2) of the Payment and Settlement Systems Act, 2007.
Yours faithfully,
(Gunveer Singh)
Chief General Manager-in-Charge
Annexure
Modifications of instructions issued under the Payment and Settlement Systems Act, 2007
CO.DPSS.POLC.No.S-955/02-30-010/2025-26 dated November 28, 2025
Directions
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2025-26/101 · issued 28 Nov 2025. 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=13171&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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