Compliance with Know Your Customer (KYC) norms

भारतीय ररज़र्व बैंक RESERVE BANK OF INDIA www.rbi.org.in RBI/2025-26/101 CO.DPSS.POLC.No. S-955/02-30-010/2025-26 November 28, 2025 All Payment System Providers and Payment System Participants Madam / Sir, Compliance with Know Your Customer (KYC) norms The Reserve Bank has, today, repealed the RBI Master Direction DBR.AML.BC.No.81/14.01.001/2015-16 dated February 25, 2016 (as updated from time to time) with immediate effect. 2. In view of the above, all references to the said Master Direction in instructions to Payment System Providers and Payment System Participants shall be read as reference to ‘Reserve Bank of India (Commercial Banks – Know Your Customer) Directions, 2025’. A list of changes carried out in various circulars is annexed. 3. This direction is issued under Section 18 read with Section 10 (2) of the Payment and Settlement Systems Act, 2007. Yours faithfully, (Gunveer Singh) Chief General Manager-in-Charge Encl: a/aAnnexure Modifications of instructions issued under the Payment and Settlement Systems Act, 2007 CO.DPSS.POLC.No. S-955 / 02-30-010 / 2025-26 dated November 28, 2025 Directions Paragraph Extant directions Modified directions Master 6.1 The Know Your Customer (KYC) / The Know Your Directions Anti-Money Laundering (AML) / Customer (KYC) / Anti- on Prepaid Combating Financing of Terrorism Money Laundering Payment (CFT) guidelines issued by the (AML) / Combating Instruments Department of Regulation (DoR), RBI, Financing of Terrorism (PPIs) in “Master Direction – Know Your (CFT) guidelines issued Customer Direction, 2016”, as updated by the Department of from time to time, shall apply mutatis Regulation (DoR), RBI, mutandis to all the entities issuing in ‘Reserve Bank of PPIs. India (Commercial Banks – Know Your Customer) Directions, 2025’, as updated from time to time, shall apply mutatis mutandis to all the entities issuing PPIs. Master 9.1 (i) b. Minimum details shall necessarily Minimum details shall Directions include a mobile number verified with necessarily include a on Prepaid One Time Password (OTP) and a self- mobile number verified Payment declaration of name and unique with One Time Instruments identity / identification number of any Password (OTP) and a (PPIs) ‘mandatory document’ or ‘Officially self-declaration of name Valid Document (OVD)’ or any such and unique identity / document with any name listed for this identification number of purpose in the Master Direction on any ‘mandatory KYC, as amended from time to time; document’ or ‘Officially Valid Document (OVD)’ or any such document with any name listed for this purpose in the ‘Reserve Bank of India (Commercial Banks – Know Your Customer) Directions, 2025’, as amended from time to time; Master 9.1 (ii) b. Minimum details shall necessarily Minimum details shall Directions include a mobile number verified with necessarily include a on Prepaid OTP and a self-declaration of name mobile number verified Payment and unique identity / identification with OTP and a self- Instruments number of any ‘mandatory document’ declaration of name (PPIs)or OVD or any such document with and unique identity / any name listed for this purpose in the identification number of Master Direction on KYC, as any ‘mandatory amended from time to time; document’ or OVD or any such document with any name listed for this purpose in the ‘Reserve Bank of India (Commercial Banks – Know Your Customer) Directions, 2025’, as amended from time to time; Master 4 k. Central KYC Records Registry Central KYC Records Direction on (CKYCR), Officially Valid Document Registry (CKYCR), Regulation (OVD), equivalent e-document, digital Officially Valid of Payment KYC, and Video-based Customer Document (OVD), Aggregator Identification Procedure (V-CIP) shall equivalent e-document, (PA) have the same meanings as defined digital KYC, and Video- in RBI Master Direction based Customer DBR.AML.BC.No.81/14.01.001/2015- Identification 16 dated February 25, 2016 on Procedure (V-CIP) ‘Master Direction - Know Your shall have the same Customer (KYC) Direction, 2016’, as meanings as defined amended from time to time in ‘Reserve Bank of (hereinafter referred to as ‘MD on India (Commercial KYC’) Banks – Know Your Customer) Directions, 2025’, as amended from time to time (hereinafter referred to as ‘MD on KYC’) Master 15 a. i. Digital KYC process as provided in Digital KYC process as Direction on Annex–I of MD – KYC (in lieu of provided in paragraph Regulation Business Correspondents) 24 of MD – KYC (in of Payment lieu of Business Aggregator Correspondents) (PA) Master 15 a. ii. Assisted V-CIP, only by the agent Assisted V-CIP, only by Direction on assisting the individual / proprietor / the agent assisting the Regulation power of attorney holder / beneficial individual / proprietor / of Payment owner / authorised signatory of the power of attorney Aggregator merchant, in terms of Paragraph 18 of holder / beneficial (PA) MD on KYC. PA shall maintain the owner / authorised details of the agent assisting the signatory of the merchant, where services of such merchant, in terms of agents are employed. Paragraph 27 of MD on KYC. PA shall maintain the details of the agentassisting the merchant, where services of such agents are employed. Aadhaar Annex The acquiring bank shall carry out due The acquiring bank Enabled paragraph diligence of all ATOs before shall carry out due Payment 2.1 onboarding them, adopting the same diligence of all ATOs System – process as indicated in the Customer before onboarding Due Due Diligence procedure for them, adopting the Diligence of individuals, stipulated in paragraph 16 same process as AePS of Part-I, Chapter-VI of the Master indicated for individuals Touchpoint Direction – Know Your Customer in the ‘Reserve Bank of Operators Direction, 2016 (as updated from time India (Commercial to time), issued by the Reserve Bank. Banks – Know Your However, if the due diligence of ATOs Customer) Directions, has already been done in their 2025’ (as updated from capacity as Business Correspondent / time to time), issued by sub-agent, then the same may be the Reserve Bank. adopted. The acquiring bank shall However, if the due also carry out periodic updation of diligence of ATOs has KYC of ATOs. already been done in their capacity as Business Correspondent / sub- agent, then the same may be adopted. The acquiring bank shall also carry out periodic updation of KYC of ATOs. Domestic 1 b) i. Remitting banks / Business Remitting banks / Money Correspondents (BCs) shall register Business Transfer – the remitter based on a verified cell Correspondents (BCs) Review of phone number and a self-certified shall register the Framework ‘Officially Valid Document (OVD)’ as remitter based on a per the Master Direction – Know Your verified cell phone Customer Direction 2016, as number and a self- amended from time to time. certified ‘Officially Valid Document (OVD)’ as per the ‘Reserve Bank of India (Commercial Banks – Know Your Customer) Directions, 2025’, as amended from time to time. Guidelines 14. The KYC documentation and its The KYC for the process may be standardised and documentation and its Trade disclosed to all stakeholders by process may beReceivables TReDS. As it requires confirmation of standardised and Discounting the banker of the MSME seller / buyer, disclosed to all System as the case may be, the KYC stakeholders by (TReDS) documentation may be synchronous TReDS. As it requires with the documentation / verification confirmation of the done by the banks in adherence to the banker of the MSME extant regulatory requirements seller / buyer, as the (Reserve Bank of India’s “Master case may be, the KYC Direction - Know Your Customer documentation may be (KYC) Direction, 2016” dated synchronous with the February 25, 2016 (as amended from documentation / time to time)). verification done by the banks in adherence to the extant regulatory requirements (‘Reserve Bank of India (Commercial Banks – Know Your Customer) Directions, 2025’ (as amended from time to time)).