**Executive Summary**
The Reserve Bank of India issued the "Reserve Bank of India (Asset Reconstruction Companies – Know Your Customer) Amendment Directions, 2025" on December 29, 2025. This amendment clarifies the responsibility for verifying customer KYC records uploaded to the Central KYC Records Registry (CKYCR). The directions are effective immediately.
**Key Points / Main Content**
* **Amendment Title and Effective Date:**
* These directions are called the "Reserve Bank of India (Asset Reconstruction Companies – Know Your Customer) Amendment Directions, 2025."
* The directions come into force with immediate effect on December 29, 2025.
* **Amendment to Paragraph 59:**
* An "Explanation" is added to paragraph 59 of the original directions, clarifying KYC responsibilities when using CKYCR records.
* **KYC Verification Responsibilities:**
* The RE (Regulated Entity) that last uploaded or updated a customer's KYC records in the CKYCR is responsible for verifying the customer's identity and/or address.
* ARCs (Asset Reconstruction Companies) downloading KYC records from CKYCR are not required to re-verify identity and/or address if the downloaded records are current and compliant with the PML Act, 2002/PML Rules, 2005.
* ARCs remain responsible for all other aspects of CDD (Customer Due Diligence) procedures.
**Impact Analysis**
**Impact: Regulated Entities (REs)**
* **Impact:** REs bear the responsibility for ensuring the accuracy of KYC information uploaded to the CKYCR, including verifying the identity and address of the customer during the initial upload and any subsequent updates.
* **Action Required:** REs must ensure that their KYC procedures are robust enough to verify the accuracy of customer information before uploading it to CKYCR.
**Impact: Asset Reconstruction Companies (ARCs)**
* **Impact:** ARCs that rely on KYC records downloaded from the CKYCR are relieved of the burden of re-verifying the customer's identity and address, if the KYC records are current and compliant with the PML Act, 2002/PML Rules, 2005.
* **Action Required:** ARCs must ensure the KYC records they download from CKYCR are current and compliant, while remaining responsible for other aspects of Customer Due Diligence, excluding identity and address verification.
Key Entities Referenced
Reserve Bank of India (Asset Reconstruction Companies – Know Your Customer) Directions, 2025: The original directions concerning KYC norms for Asset Reconstruction Companies, which this document amends.
Reserve Bank of India (Asset Reconstruction Companies – Know Your Customer) Amendment Directions, 2025: The document itself, amending existing KYC directions for Asset Reconstruction Companies.
Prevention of Money-Laundering Act, 2002: The act under which these Directions are issued.
Central KYC Records Registry (CKYCR): A centralized repository for KYC records, central to the amendment regarding verification responsibilities.
Reserve Bank of India: The regulatory body issuing the direction.
RBI/2025-26/158
DOR.AML.REC.362/14.01.010/2025-26 December 29, 2025
Reserve Bank of India (Asset Reconstruction Companies – Know Your Customer)
Amendment Directions, 2025
Reserve Bank had issued Reserve Bank of India (Asset Reconstruction Companies –
Know Your Customer) Directions, 2025 dated November 28, 2025 (hereinafter referred to
as the Directions) in compliance of the provisions of the PML Act, 2002 and the Rules
made thereunder. There is a need to amend the Directions to clarify the responsibility of
entities uploading customer records to and downloading the same from CKYCR, based
on the office memorandum (OM) titled “CKYCR and the ultimate responsibility of REs –
reg.” issued by the Department of Revenue, Govt of India, dated September 18, 2025.
2. Accordingly, in exercise of the powers conferred by sections 3, 9, 10, 12 and 12A of
the Securitisation and Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002 (54 of 2002) , sections 45JA, 45K, and 45L of the Reserve Bank of
India Act, 1934, section 10(2) read with section 18 of Payment and Settlement Systems
Act 2007 (Act 51 of 2007), section 11(1) of the Foreign Exchange Management Act
(FEMA), 1999, Rule 9(14) of the Prevention of Money-Laundering (Maintenance of
Records) Rules, 2005, and all other enabling laws in this regard, the Reserve Bank being
satisfied that it is necessary and expedient in the public interest so to do, hereby issues
the Amendment Directions hereinafter specified.
3. Short Title and Commencement
(1) These Directions shall be called the Reserve Bank of India (Asset Reconstruction
Companies – Know Your Customer) Amendment Directions, 2025.
(2) These Directions shall come into force with immediate effect.
4. These Amendment Directions modify the Reserve Bank of India (Asset Reconstruction
Companies – Know Your Customer) Directions, 2025 as under:(1) In paragraph 59, the following “Explanation” is being inserted after sub-paragraph
(10):
“Explanation: The RE that has last uploaded or updated the customer’s KYC records in
the CKYCR shall be responsible for verifying the identity and / or address of the customer,
as applicable. Accordingly, any ARC downloading and relying on such records from the
CKCYR shall not be required to re-verify the authenticity of the customer’s identity and /
or address, provided the KYC records downloaded from CKYCR are current and
compliant with the PML Act, 2002 / PML Rules, 2005. The ARC downloading and relying
on KYC records downloaded from the CKCYR shall remain responsible for all aspects of
CDD procedure and provisions of these Directions, except verification of identity and / or
address of the customer.”
(Veena Srivastava)
Chief General Manager