**Summary:**
This Reserve Bank of India (RBI) circular, RBI/2019-20/37 DBR.AML.BC.No.11/14.01.001/2019-20 dated August 9, 2019, addresses an amendment to the Master Direction (MD) on Know Your Customer (KYC) guidelines. The amendment is based on a Government of India Gazette Notification G.S.R. 381(E) dated May 28, 2019, which modified the Prevention of Money-laundering (Maintenance of Records) Rules, 2005. The key change pertains to Section 23 of the Master Direction, specifically condition (b), to allow prisoners to operate accounts. Signatures or thumbprints of prisoners must be affixed in the presence of the officer in-charge of the jail, who must then certify the same. The account will remain operational upon annual submission of a certificate of proof of address issued by the jail's officer in-charge. This updated Master Direction on KYC, effective immediately, supersedes the version dated February 25, 2016, to reflect this amendment. Regulated entities should take note of this change. Further inquiries can be directed to Dr. S. K. Kar, Chief General Manager, Department of Banking Regulation, Central Office, Central Office Building, 13th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400 001. Phone: 022-22701203, Fax: 022-22701239, Email: cgmamlrbi.org.in, Website: www.rbi.org.in.
Key Entities Referenced
Reserve Bank of India: The central bank of India, referred to as RBI in the document.
Master Direction on KYC: A regulatory document issued by the RBI related to Know Your Customer guidelines.
Prevention of Money-laundering Maintenance of Records Rules, 2005: Indian regulation related to the prevention of money laundering.
Department of Banking Regulation: A department within the Reserve Bank of India.
Dr. S. K. Kar: Chief General Manager at Reserve Bank of India.
Mumbai, Maharashtra: City in India, where the Central Office of the Department of Banking Regulation is located.
Gazette Notification G.S.R. 381E: A formal notification published in the official government gazette.
PML Rules: Abbreviation used for Prevention of Money-laundering Maintenance of Records Rules, 2005
RBI/2019-20/37
DBR.AML.BC.No.11/14.01.001/2019-20 August 9, 2019
The Chairpersons/ CEOs of all the Regulated Entities
Dear Sir/Madam,
Amendment to Master Direction (MD) on KYC
Government of India, vide Gazette Notification G.S.R. 381(E) dated May 28, 2019, has notified
amendment to the Prevention of Money-laundering (Maintenance of Records) Rules, 2005.
2. The change carried out in the Master Direction in accordance with the aforementioned
amendment to the PML Rules is as under:
• A proviso has been added to condition (b) of Section 23 of the Master Direction to the effect
that, where the individual is a prisoner in a jail, the signature or thumb print shall be affixed in
presence of the officer in-charge of the jail and the said officer shall certify the same under
his signature and the account shall remain operational on annual submission of certificate of
proof of address issued by the officer in-charge of the jail.
3. The Master Direction on KYC dated February 25, 2016, is hereby updated to reflect the
change effected by the above amendment and shall come into force with immediate effect.
Yours faithfully,
(Dr. S. K. Kar)
Chief General Manager
ब��कंग �व�नयमन �वभाग, क�द्र�य कायार्लय, क�द्र�य कायार्लय भवन, 13वीं मंिजल, शह�द भगत �सहं माग,र् मुंबई – 400 001
फोन: 022-22701203, फैक्स: 022-22701239, ई-मेल: cgmaml@rbi.org.in, वेबसाइट: www.rbi.org.in
Department of Banking 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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