Current · Source: Reserve Bank of India · RBI/2025-26/99 · issued 28 Nov 2025 · ~1 min read
Quick answerRBI issues new guidelines for KYC compliance, effective immediately, for Authorised Persons regulated by the Department of Regulation and those not regulated by it.
The rule, in the simplest words
Authorised Persons must follow new KYC guidelines to avoid penalties.
Banks and lenders must ensure their agents, sub-agents, and franchisees comply with the guidelines.
The guidelines aim to strengthen KYC norms and prevent money laundering and terrorist financing activities.
How it plays out — a real example
Rahul, a KYC & compliance officer in Indore, ensures that his customers provide necessary documents and information to comply with the new KYC guidelines. He also trains his staff on the new guidelines and conducts regular audits to ensure compliance.
What changed
RBI has issued new guidelines for KYC compliance for Authorised Persons regulated by the Department of Regulation and those not regulated by it.
The guidelines supersede the Master Direction – Know Your Customer (KYC) Direction, 2016.
Authorised Persons regulated by the Department of Regulation will be governed by respective 'Know Your Customer' directions applicable to them.
What it means for you
Banks and lenders must ensure compliance with the new guidelines to avoid any penalties or fines.
The guidelines aim to strengthen KYC norms and prevent money laundering and terrorist financing activities.
Authorised Persons must ensure that their agents, sub-agents, and franchisees comply with the guidelines.
What you must do
Review and update KYC procedures to ensure compliance with the new guidelines.
Train staff on the new guidelines and ensure they understand their responsibilities.
Conduct regular audits to ensure compliance with the guidelines.
Who it affects
Authorised Persons regulated by the Department of Regulation, Authorised Persons not regulated by the Department of Regulation, Agents, sub-agents, and franchisees of Authorised Persons
❓ Common questions
What are the consequences of non-compliance with the new guidelines?
The circular does not specify penalties or fines for non-compliance; Authorised Persons must ensure compliance by their agents/sub-agents/franchisees.
📜 Read the original circular — full text as issued by RBI
RBI/2025-26/99
A.P. (DIR Series) Circular No. 16
November 28, 2025
All Authorised Persons
Madam / Sir,
Compliance with Know Your Customer (KYC) norms
Attention of Authorised Persons is invited to instructions contained in Section I and Section VI of ' Master Direction – Money Changing Activities '; Para 27(4) of ' Master Direction – Overseas Investment '; Para 6.5 of ' Master Direction – Other Remittance Facilities '; and Para 3.2.b and 8(i) of ' Master Direction – Money Transfer Service Scheme (MTSS) ' on compliance with KYC norms.
2. ' Master Direction – Know Your Customer (KYC) Direction, 2016 ' has since been substituted with regulatory instructions applicable separately to each type of entity regulated by the Department of Regulation, Reserve Bank of India. Therefore, it is directed as under:
Authorised Persons, which are regulated by the Department of Regulation, Reserve Bank of India, shall be governed by the respective 'Know Your Customer' directions as applicable to them.
Authorised Persons, which are not regulated by the Department of Regulation, Reserve Bank of India, shall be governed by ' Reserve Bank of India (Non-Banking Financial Companies – Know Your Customer) Directions, 2025 '.
Authorised Persons shall ensure compliance of directions, as applicable to them, by their agents/ sub-agents/franchisees.
3. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
4. The instructions contained in ' Master Direction – Money Changing Activities ', ' Master Direction – Overseas Investment ', ' Master Direction – Other Remittance Facilities ', and ' Master Direction – Money Transfer Service Scheme (MTSS) ' are being modified accordingly.
5. The above instructions are applicable with immediate effect. Authorised Persons may bring the contents of this circular to the notice of their constituents and customers concerned.
Yours faithfully,
(Dr. Aditya Gaiha)
Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2025-26/99 · issued 28 Nov 2025. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (Authorised Persons regulated by the Department of Regulation, Authorised Persons not regulated by the Department of Regulation, Agents, sub-agents, and franchisees of Authorised Persons), your first concrete step on “KYC Compliance for Authorised Persons” is: “Review and update KYC procedures to ensure compliance with the new guidelines.” (RBI issued this 28 Nov 2025).
Circular: RBI/2025-26/99 -- KYC Compliance for Authorised Persons
Issued: 28 Nov 2025
Action required: Review and update KYC procedures to ensure compliance with the new guidelines.
Action required: Train staff on the new guidelines and ensure they understand their responsibilities.
Action required: Conduct regular audits to ensure compliance with the guidelines.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
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.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
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=13169&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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