What changed
RBI inserted a new Explanation in paragraph 64 of the Rural Co-operative Banks – KYC Directions, 2025. It specifies that the bank which last uploaded or updated KYC records in CKYCR is responsible for verifying the customer's identity/address. Banks downloading and relying on such records are exempt from re-verifying identity/address, provided the records are current and compliant with PML Act/Rules.
What it means for you
This amendment reduces duplication of KYC verification for rural co-operative banks that rely on CKYCR records, lowering operational costs and customer friction. However, the downloading bank remains fully responsible for all other aspects of Customer Due Diligence (CDD), including risk profiling and ongoing monitoring. Banks must ensure they only rely on records that are current and compliant.
What you must do
- Update internal KYC policies to reflect that the bank last uploading/updating CKYCR records bears identity/address verification responsibility.
- Ensure your bank's KYC uploads to CKYCR are accurate and compliant, as you become the verifying entity for those records.
- When downloading KYC records from CKYCR, verify that they are current and PML-compliant before relying on them for CDD.
- Train staff on the distinction between identity/address verification (now exempt for downloaders) and other CDD responsibilities that remain.
- Review existing CKYCR upload and download processes to align with the new responsibility framework.
Who it affects
Rural Co-operative Banks, Banks using CKYCR for KYC records, Compliance and KYC operations teams, Internal audit and risk management functions
When did this amendment take effect?
The amendment came into force with immediate effect from the date of the RBI notification, which is December 29, 2025.