**Executive Summary**
This circular, RBI/2025-26/99, dated November 28, 2025, addresses compliance with Know Your Customer (KYC) norms for all Authorized Persons. It substitutes the 'Master Direction – Know Your Customer (KYC) Direction, 2016' and provides updated guidelines applicable to different types of regulated entities. The instructions are effective immediately.
**Key Points / Main Content**
* **Substitution of KYC Direction:**
* The 'Master Direction – Know Your Customer (KYC) Direction, 2016' is replaced by new regulatory instructions tailored to each type of entity regulated by the Reserve Bank of India's Department of Regulation.
* **Applicability of KYC Directions:**
* Authorised Persons regulated by the Department of Regulation, RBI, must adhere to the respective ‘Know Your Customer’ directions as applicable.
* Authorised Persons not regulated by the Department of Regulation, RBI, must comply with the ‘Reserve Bank of India (Non-Banking Financial Companies – Know Your Customer) Directions, 2025'.
* Authorised Persons must ensure compliance with the directions through their agents/sub-agents/franchisees.
* **Legal Basis:**
* These directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999.
* **Modification of Previous 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.
* **Immediate Effect:**
* The instructions are effective immediately.
**Impact Analysis**
**Authorised Persons**
* **Impact:** Changes in KYC compliance requirements based on whether they are regulated by the Department of Regulation, RBI, or not.
* **Action Required:** Review and implement the applicable KYC directions, ensuring compliance through their agents/sub-agents/franchisees. They must bring the contents of this circular to the notice of their constituents and customers concerned.
Key Entities Referenced
Foreign Exchange Management Act (FEMA), 1999: The Act under which the directions in the circular are issued.
Master Direction – Know Your Customer (KYC) Direction, 2016: A direction issued by the RBI regarding KYC compliance, later substituted.
Reserve Bank of India (Non-Banking Financial Companies – Know Your Customer) Directions, 2025: RBI directions governing KYC norms for NBFCs.
Master Direction – Money Changing Activities: A Master Direction issued by the RBI regarding money changing activities.
Master Direction – Overseas Investment: A Master Direction issued by the RBI regarding overseas investment.
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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