**Executive Summary**
This circular, RBI/2025-26/99, issued on November 28, 2025, by the Reserve Bank of India, addresses compliance with Know Your Customer (KYC) norms for all Authorised Persons. It details the application of updated KYC directions based on whether the Authorised Person is regulated by the Department of Regulation, Reserve Bank of India. The circular takes effect immediately.
**Key Points / Main Content**
* **Superseded Direction:**
* The 'Master Direction – Know Your Customer (KYC) Direction, 2016' has been replaced.
* **Applicable KYC Directions:**
* Authorised Persons regulated by the Department of Regulation, Reserve Bank of India, are governed by the respective ‘Know Your Customer' directions applicable to them.
* Authorised Persons not regulated by the Department of Regulation, Reserve Bank of India, are governed by the ‘Reserve Bank of India (Non-Banking Financial Companies – Know Your Customer) Directions, 2025'.
* Authorised Persons must ensure compliance with the applicable KYC directions through their agents, sub-agents, and franchisees.
* **Legal Basis:**
* The directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999.
* **Modified Instructions:**
* Instructions contained in 'Master Direction – Money Changing Activities', ‘Master Direction - Overseas Investment', 'Master Direction – Other Remittance Facilities', and 'Master Direction – Money Transfer Service Scheme (MTSS)' are being modified accordingly.
* **Effective Date:**
* The instructions are effective immediately.
* **Communication:**
* Authorised Persons should inform their constituents and customers about the contents of this circular.
**Impact Analysis**
**Stakeholder:** Authorised Persons
* **Impact:** Affected by changes in KYC compliance requirements and the substitution of the 2016 KYC Master Direction.
* **Action Required:** Determine whether they are regulated by the Department of Regulation, Reserve Bank of India and comply with the appropriate KYC directions, ensuring agents/sub-agents/franchisees are also compliant. They must also inform their constituents and customers.
Key Entities Referenced
Reserve Bank of India: India's central bank, responsible for regulating banking and financial services.
Foreign Exchange Management Act (FEMA), 1999: Indian law that regulates foreign exchange and international trade.
Master Direction – Know Your Customer (KYC) Direction, 2016: A set of instructions issued by the Reserve Bank of India regarding Know Your Customer norms.
Master Direction – Money Changing Activities: A regulatory document governing money changing activities.
Master Direction – Money Transfer Service Scheme (MTSS): A regulatory document governing Money Transfer Service Scheme.
बेर्ी बचाओ
भारतीय ररज़र्व बैंक बेर्ी पढाओ
RESERVE BANK OF INDIA
RBI/2025-26/99
A.P. (DIR Series) Circular No. 16 November 28, 2025
All Authorised Persons
Madam / Sir,
Compliance with Know Your Customer (KYC) norms
Attention of Authorised Persons is invited to instructions contained in Section I and
Section VI of ‘Master Direction – Money Changing Activities’; Para 27(4) of ‘Master
Direction – Overseas Investment’; Para 6.5 of ‘Master Direction – Other Remittance
Facilities’; and Para 3.2.b and 8(i) of ‘Master Direction – Money Transfer Service Scheme
(MTSS)’ on compliance with KYC norms.
2. ‘Master Direction – Know Your Customer (KYC) Direction, 2016’ has since been
substituted with regulatory instructions applicable separately to each type of entity
regulated by the Department of Regulation, Reserve Bank of India. Therefore, it is
directed as under:
(a) Authorised Persons, which are regulated by the Department of Regulation,
Reserve Bank of India, shall be governed by the respective ‘Know Your Customer’
directions as applicable to them.
(b) Authorised Persons, which are not regulated by the Department of Regulation,
Reserve Bank of India, shall be governed by ‘Reserve Bank of India (Non-Banking
Financial Companies – Know Your Customer) Directions, 2025’.
(c) Authorised Persons shall ensure compliance of directions, as applicable to them,
by their agents/ sub-agents/franchisees.
3. The directions contained in this circular have been issued under sections 10(4) and
11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are
without prejudice to permissions / approvals, if any, required under any other law.
विदेशी मुद्रा विभाग, केन्द्रीय कायाालय, केन्द्रीय कायाालय भिन, शहीद भगत व िंह मागा, फोर्ा, मुिंबई-400 001 भारत
Foreign Exchange Department, Central Office ,Central Office building,
Shahid Bhagat Singh Road, Fort, Mumbai-400 001, India
टेलीफोन/Telephone No.022-22601000, ईमेल:fedcopcd@rbi.org.in
वहिंदी में काम करना आ ान है, इ का प्रयोग बढाइए ।4. The instructions contained in ‘Master Direction – Money Changing Activities’, ‘Master
Direction – Overseas Investment’, ‘Master Direction – Other Remittance Facilities’, and
‘Master Direction – Money Transfer Service Scheme (MTSS)’ are being modified
accordingly.
5. The above instructions are applicable with immediate effect. Authorised Persons may
bring the contents of this circular to the notice of their constituents and customers
concerned.
Yours faithfully,
(Dr. Aditya Gaiha)
Chief General Manager-in-Charge
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