**Executive Summary**
This circular, RBI/2025-26/99, dated November 28, 2025, addresses compliance with Know Your Customer (KYC) norms for all Authorised Persons. It announces the substitution of 'Master Direction – Know Your Customer (KYC) Direction, 2016' with regulatory instructions applicable separately to each type of entity regulated by the Department of Regulation, Reserve Bank of India. The instructions in this circular are effective immediately.
**Key Points / Main Content**
* **Regulatory Changes:**
* 'Master Direction – Know Your Customer (KYC) Direction, 2016' is replaced by new regulatory instructions tailored to different entities regulated by the Reserve Bank of India's Department of Regulation.
* **Applicable Directions:**
* Authorised Persons regulated by the Department of Regulation must follow KYC directions applicable to them.
* Authorised Persons not regulated by the Department of Regulation must adhere to the 'Reserve Bank of India (Non-Banking Financial Companies – Know Your Customer) Directions, 2025'.
* Authorised Persons must ensure their agents/sub-agents/franchisees comply with the applicable directions.
* **Legal Basis:**
* The directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999.
* **Modification of Instructions:**
* Instructions 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.
**Impact Analysis**
**Authorised Persons**
* **Impact:** Must comply with updated KYC norms based on whether they are regulated by the Department of Regulation, Reserve Bank of India, or not.
* **Action Required:** Determine which set of KYC directions applies to them and ensure compliance within their operations and across their agents/sub-agents/franchisees; notify constituents and customers of changes.
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: The KYC direction being substituted by regulatory instructions.
Reserve Bank of India: The issuing authority of the circular and regulator mentioned in the circular.
Master Direction – Money Changing Activities: One of the Master Directions referred to regarding KYC compliance.
Master Direction – Overseas Investment: One of the Master Directions referred to regarding KYC compliance.
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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