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Corporate Laws Central Ministry of Finance Prevention of Money-laundering Act, 2002

Reserve Bank of India (Know Your Customer (KYC)) (Amendment) Directions, 2025

12-Jun-2025 | RBI/2025-2026/51 DOR.AML.REC.30/14.01.001/2025-26

Reserve Bank of India(RBI) has issued Reserve Bank of India (Know Your Customer (KYC)) (Amendment) Directions, 2025, amending provisions under Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016, effective from 12th June 2025. Key updates under the Amendment Directions: 1. According to the Amendment Directions, Regulated Entities (REs) must allow all low-risk individual customers to complete periodic Know Your Customer (KYC) updates up to one year after the due date or by June 30, 2026, whichever date is later. This requirement applies to those low-risk customers for whom periodic KYC updates have already become due. 2. Additionally, as stated in paragraph 38(a)(iia) of the Amendment Directions, banks may utilize authorized Business Correspondents (BCs) for self-declaration regarding unchanged KYC details or address updates. The bank will obtain self-declarations and supporting documents, which must be captured electronically in the bank's systems after successful biometric e-KYC authentication. 3. REs are required to send three advance notifications, including at least one notification by letter before the due date, as well as three reminders, including at least one reminder by letter after the due date, for periodic KYC updates. These communications should be sent at appropriate intervals through available communication options and channels. It is important to note that the communications from REs must include instructions, escalation mechanisms, and consequences for non-compliance. REs must also record the advance notifications and reminders sent to each customer in their systems for audit purposes. Furthermore, these requirements must be implemented by January 1, 2026. For more information, please refer to the attached document.

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