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

Reserve Bank of India (Urban Co-operative Banks - Know Your Customer) Directions, 2025

28-Nov-2025 | RBI/DOR/2025-26/291 DOR.AML.REC.No.210/14.01.006/2025-26

RBI has issued RBI (Urban Co-operative Banks - Know Your Customer) Directions, 2025 effective from 28th November 2025. Key Highlights: 1. Applicability - All Urban Co-operative Banks (UCBs), meaning Primary Co-operative Banks as defined under the Banking Regulation Act. 2. UCBs must follow a clear KYC policy approved by their Board, covering customer acceptance, risk management, identification, and transaction monitoring. 3. Banks must conduct due diligence for individuals, legal entities, proprietorships, and must always identify the beneficial owner behind any entity. Enhanced checks are needed for high-risk cases, especially non-face-to-face account opening, foreign nationals, and certain customer categories. 4. Banks must keep KYC information updated, remind customers before due dates, and temporarily freeze accounts if PAN/Form 60 is not provided by notified dates. 5. Banks must upload and update KYC data in the Central KYC Records Registry (CKYCR) within required timelines and use the KYC Identifier to avoid repeat KYC. 6. Banks must comply with international AML/CFT standards, follow FATF advisories, apply enhanced monitoring for high-risk countries, and meet FATCA/CRS reporting requirements. 7. Customer information must remain confidential, and banks may share data only when legally required, with customer consent, or in cases of public interest. For more information, please refer to the attached document.

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