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RBI Amends KYC Directions

Current · Source: Reserve Bank of India · RBI/2025-26/159 · issued 29 Dec 2025 · ~1 min read
Quick answerRBI amends Know Your Customer directions for local area banks, clarifying responsibility for uploading and downloading customer records from the Central KYC Records Registry.
The rule, in the simplest words
How it plays out — a real example

Rahul, a KYC & compliance officer in Indore, uploads a customer's KYC records to the Central KYC Records Registry. Later, when another bank downloads these records, Rahul's bank is responsible for verifying the customer's identity and address. The second bank doesn't need to re-verify, as long as the records are current and compliant with anti-money laundering laws.

What changed

The Reserve Bank of India has amended its Know Your Customer directions to clarify the responsibility of entities uploading and downloading customer records from the Central KYC Records Registry. The amendment inserts an explanation in paragraph 64, specifying that the entity that last uploaded or updated a customer's KYC records is responsible for verifying the customer's identity and/or address. Accordingly, any bank downloading and relying on such records from the CKYCR shall not be required to re-verify the authenticity of the customer's identity and/or address, provided the KYC records downloaded from CKYCR are current and compliant with the PML Act, 2002 / PML Rules, 2005. The bank downloading and relying on KYC records downloaded from the CKYCR shall remain responsible for all aspects of CDD procedure and provisions of these Directions, except verification of identity and/or address of the customer.

What it means for you

The amendment aims to streamline the KYC process and reduce duplication of efforts. It also clarifies the responsibilities of banks and other entities in verifying customer identities and addresses.

What you must do

Who it affects

Local area banks, Other regulated entities

❓ Common questions

What is the purpose of the amendment?

The amendment aims to clarify the responsibility of entities uploading and downloading customer records from the Central KYC Records Registry.

Who is responsible for verifying customer identities and addresses?

The entity that last uploaded or updated a customer's KYC records is responsible for verifying the customer's identity and/or address.

📜 Read the original circular — full text as issued by RBI
RBI/2025-26/159 DOR.AML.REC.363/14.01.008/2025-26 December 29, 2025 Reserve Bank of India (Local Area Banks – Know Your Customer) Amendment Directions, 2025 Reserve Bank had issued Reserve Bank of India (Local Area Banks – Know Your Customer) Directions, 2025 dated November 28, 2025 (hereinafter referred to as the Directions) in compliance of the provisions of the PML Act, 2002 and the Rules made thereunder. There is a need to amend the Directions to clarify the responsibility of entities uploading customer records to and downloading the same from CKYCR, based on the office memorandum (OM) titled "CKYCR and the ultimate responsibility of REs – reg." issued by the Department of Revenue, Govt of India, dated September 18, 2025. 2. Accordingly, in exercise of the powers conferred by sections 35A of the Banking Regulation Act, 1949, the Banking Regulation Act (AACS), 1949, read with section 56 of the Act ibid., section 10(2) read with section 18 of Payment and Settlement Systems Act 2007 (Act 51 of 2007), section 11(1) of the Foreign Exchange Management Act, 1999, Rule 9(14) of the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005, and all other enabling laws in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified. 3. Short Title and Commencement (1) These Directions shall be called the Reserve Bank of India (Local Area Banks – Know Your Customer) Amendment Directions, 2025. (2) These Directions shall come into force with immediate effect. 4. These Amendment Directions modify the Reserve Bank of India (Local Area Banks – Know Your Customer) Directions, 2025 as under: (1) In paragraph 64, the following "Explanation" is being inserted after sub-paragraph (10): "Explanation: The RE that has last uploaded or updated the customer's KYC records in the CKYCR shall be responsible for verifying the identity and / or address of the customer, as applicable. Accordingly, any bank downloading and relying on such records from the CKCYR shall not be required to re-verify the authenticity of the customer's identity and / or address, provided the KYC records downloaded from CKYCR are current and compliant with the PML Act, 2002 / PML Rules, 2005. The bank downloading and relying on KYC records downloaded from the CKCYR shall remain responsible for all aspects of CDD procedure and provisions of these Directions, except verification of identity and / or address of the customer." (Veena Srivastava) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2025-26/159 · issued 29 Dec 2025. The plain-English explanation above is BankPulse’s own independent summary.
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Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (Local area banks, Other regulated entities), your first concrete step on “RBI Amends KYC Directions” is: “Review the amended KYC directions” (RBI issued this 29 Dec 2025).

  1. Circular: RBI/2025-26/159 -- RBI Amends KYC Directions
  2. Issued: 29 Dec 2025
  3. Action required: Review the amended KYC directions
  4. Action required: Update internal processes for KYC record verification
  5. Action required: Ensure compliance with the PML Act and Rules
  6. Owner: ____________ Target date: ____________
  7. Board/committee approval needed? Y / N
  8. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13235&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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