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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

Reserve Bank of India (Non-Banking Financial Companies – Know Your Customer) Directions, 2025

28-Nov-2025 | RBI/DOR/2025-26/361 DOR.AML.REC.No.280/14.01.003/2025-26

RBI has issued RBI (Non-Banking Financial Companies - Know Your Customer) Directions, 2025 effective from 28th November 2025. Key Highlights: 1. Applicability - Applicable to all categories and layers of Non-Banking Financial Companies (NBFCs), unless stated otherwise. However, they do not apply to NBFCs that have no customer interface. 2. Board-approved Policy - It must cover four areas: customer acceptance, risk management, customer identification procedures, and transaction monitoring. 3. Mandatory Risk Assessment - NBFCs must regularly assess money laundering and terrorist financing risks and implement controls across the group as per PMLA requirements. 4. Customer Due Diligence (CDD) - CDD is required for all new customers (individuals and legal entities), beneficial owners, proprietorships, and during periodic KYC updates. 5. Voluntary Aadhaar Use (Except for Government Subsidies) - Aadhaar is not mandatory for KYC; customers may provide it voluntarily. If they want government benefits, Aadhaar must be provided. NBFCs must ensure Aadhaar use follows the Aadhaar Act. 6. Digital KYC - NBFCs may use a controlled digital KYC application. Live photographs of the customer and original documents must be taken with watermark details (GPS, time, officer ID, CAF number). 7. Video-Based Customer Identification Process (V-CIP) - NBFCs may onboard customers using V-CIP with secure infrastructure, end-to-end encryption, face-liveness checks, and real-time interaction. Video must include GPS coordinates and timestamp. For more information, please refer to the attached document.

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