**Policy Summary: Amendment to Master Direction on KYC Procedure for Implementation of Section 51A of the Unlawful Activities Prevention Act, 1967**
This communication from the Reserve Bank of India (RBI), dated March 23, 2021, announces amendments to the Master Direction (MD) on Know Your Customer (KYC) procedures, specifically concerning the implementation of Section 51A of the Unlawful Activities Prevention Act (UAPA), 1967.
The key change stems from a revised order issued by the Ministry of Home Affairs (MHA) on February 2, 2021, which supersedes the previous order dated March 14, 2019. Consequently, Sections 52 and 54 of the Master Direction on KYC, dated February 25, 2016, have been amended to align with the updated MHA order. Section 54 has been further updated to include information regarding the availability of the list of Nodal Officers for UAPA on the MHA website.
Regulated Entities (REs) are instructed to strictly follow the procedures outlined in the UAPA, ensuring meticulous compliance with the government order. The amendments to the Master Direction took immediate effect on March 23, 2021.
For further information, contact Thomas Mathew, Chief General Manager, Department of Regulation, Central Office, Reserve Bank of India, Central Office Building, 13th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai 400 001. Phone: 022-22701203, Fax: 022-22701239, Email: cgmamlrbi@rbi.org.in, Website: www.rbi.org.in.
Key Entities Referenced
Master Direction on KYC: A regulatory document issued by the Reserve Bank of India (RBI) concerning Know Your Customer (KYC) procedures.
Unlawful Activities Prevention Act, 1967: An Indian law aimed at preventing unlawful activities and dealing with terrorism.
Ministry of Home Affairs: A ministry of the Government of India responsible for internal security and law and order.
Section 51A of the Unlawful Activities Prevention Act, 1967: Section of the UAPA act to be implemented
Thomas Mathew: Chief General Manager at Reserve Bank of India (RBI).
Reserve Bank of India: India's central bank, responsible for regulating the banking system.
Mumbai, Maharashtra: Location of RBI Central Office
RBI/2020-21/110
DOR.AML.REC.48/14.01.001/2020-21 March 23, 2021
The Chairpersons/ CEOs of all the Regulated Entities
Dear Sir/Madam,
Amendment to Master Direction (MD) on KYC – Procedure for Implementation of Section
51A of the Unlawful Activities (Prevention) Act, 1967
Please refer to Chapter IX (‘Requirements/obligations under International Agreements
Communications from International Agencies’) of the Master Direction on KYC dated February
25, 2016. In terms of instructions contained therein, Regulated Entities (REs) have been
instructed, inter alia, that the procedure laid down in the Unlawful Activities (Prevention) Act, 1967,
(UAPA) Order dated March 14, 2019, as provided in the Annex-II to the Master Direction, shall be
strictly followed and meticulous compliance with the order issued by the Government shall be
ensured.
2. In this regard, Ministry of Home Affairs (MHA) has issued a revised order dated February 2,
2021, in supersession of the earlier order dated March 14, 2019.
3. In line with the revised order dated February 2, 2021, issued by the MHA, Sections 52 and 54
of the Master Direction on KYC dated February 25, 2016, are hereby amended.
4. Further, Section 54 has been amended to include the following:
“The list of Nodal Officers for UAPA is available on the website of Ministry of Home Affairs.”
5. These changes in the Master Direction shall come into force with immediate effect.
Yours faithfully,
(Thomas Mathew)
Chief General Manager
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फोन फैक्स ईमेल वेबसाइट
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: 022-22701203, : 022-22701239, - : cgmaml@rbi.org.in, : www.rbi.org.in
Department of Regulation, Central Office, Central Office Building, 13th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400 001
Phone : 022-22701203, Fax : 022-22701239, E-mail : cgmaml@rbi.org.in, Website : www.rbi.org.in
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