Reserve Bank of India (Know Your Customer (KYC)) (Amendment) Directions, 2025
Key Highlights of Reserve Bank of India (Know Your Customer (KYC)) (Amendment) Directions, 2025 issued vide Notification No DOR.AML.REC.30/14.01.001/2025-26 dated 12th June 2025 under Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016 effective with immediate effect
New Provisions/ clauses inserted
Para 38:- Regulated Entities (REs) to allow all transactions in respect of an individual customer who is categorized as low risk and ensure the updation of their KYC within one year of its falling due for KYC or upto June 30, 2026, whichever is later.
Regulated Entities (REs) to subject accounts of low risk customers to regular monitoring and also applicable to low-risk individual customers for whom periodic updation of KYC has already fallen due.
Para 38:- (iia) Use of Business Correspondent (BC) by banks for Updation/ Periodic Updation of KYC
Regulated Entities (REs) to obtain self-declaration from the customer in case of no change in KYC information or change only in the address details through an authorized Business Correspondent (BC) of the bank in the electronic mode after successful biometric based e-KYC authentication. Until an option is made available in the electronic mode, such declaration may be submitted in physical form by the customer.
Bank to enable its BC systems for recording these self-declarations and supporting documents thereof in electronic form in the bank’s systems.
The bank to update the customer’s KYC records and intimate the customer once the records get updated in the system.
Responsibility for periodic updation of KYC remains with the bank concerned only.
Para 38:- (e) Due Notices for Periodic Updation of KYC
The Regulated Entities (REs) to intimate its customers, in advance, to update their KYC.
Regulated Entities (REs) to give at least three advance intimations including at least one intimation by letter, at appropriate intervals to its customers through available communication options/ channels prior to the due date of periodic updation.
Subsequent to the due date, the Regulated Entities (REs) to give at least three reminders, including at least one reminder by letter, at appropriate intervals, to such customers who have still not complied with the requirements, despite advance intimations.
The letter of intimation/ reminder may contain easy to understand instructions for updating KYC, escalation mechanism for seeking help, if required, and the consequences, if any, of failure to update their KYC in time.
Regulated Entities (REs) to record in their system advance intimation/ reminder issued against each customer for audit trail.
Regulated Entities (REs) to implement the same but not later than January 01, 2026.
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