**Executive Summary**
The Reserve Bank of India (RBI) issued Amendment Directions, 2025, effective immediately as of December 29, 2025, to the Reserve Bank of India (Asset Reconstruction Companies – Know Your Customer) Directions, 2025. These amendments clarify the responsibilities of entities uploading and downloading customer KYC records from the Central KYC Records Registry (CKYCR) in compliance with the Prevention of Money Laundering (PML) Act, 2002.
**Key Points / Main Content**
* **Title and Commencement:**
* These directions are named the Reserve Bank of India (Asset Reconstruction Companies – Know Your Customer) Amendment Directions, 2025.
* The directions come into force with immediate effect, as of December 29, 2025.
* **Amendment to Paragraph 59:**
* An "Explanation" is added to paragraph 59, clarifying KYC verification responsibilities.
* **Responsibilities for KYC Verification:**
* The RE (Regulated Entity) that last uploaded or updated a customer's KYC records to the CKYCR bears the responsibility for verifying the customer's identity and/or address.
* ARCs (Asset Reconstruction Companies) downloading and relying on KYC records from CKYCR are not required to re-verify the authenticity of identity and address if the KYC records downloaded from CKYCR are current and compliant with the PML Act, 2002 / PML Rules, 2005.
* ARCs are still responsible for all aspects of CDD (Customer Due Diligence) procedures and provisions of these directions, except for the verification of identity and/or address if the KYC records downloaded from CKYCR are current and compliant with the PML Act, 2002 / PML Rules, 2005.
**Impact Analysis**
**Asset Reconstruction Companies (ARCs)**
* **Impact:** ARCs downloading and relying on KYC records from CKYCR will no longer be required to re-verify identity and/or address, provided the KYC records downloaded from CKYCR are current and compliant with the PML Act, 2002 / PML Rules, 2005, streamlining the process and avoiding duplication. They are still responsible for all aspects of CDD procedures and provisions of these directions, except verification of identity and/or address if the KYC records downloaded from CKYCR are current and compliant with the PML Act, 2002 / PML Rules, 2005.
* **Action Required:** ARCs must ensure they use current and compliant KYC records downloaded from CKYCR, and understand that they remain responsible for other CDD aspects.
**Regulated Entities (REs) Uploading/Updating KYC Records**
* **Impact:** REs which upload or update records to CKYCR are responsible for verifying KYC data.
* **Action Required:** REs must ensure they conduct thorough identity and/or address verification before uploading/updating customer KYC records to CKYCR.
Key Entities Referenced
Reserve Bank of India (Asset Reconstruction Companies – Know Your Customer) Directions, 2025: The principal directions that these amendment directions modify, pertaining to KYC norms for Asset Reconstruction Companies.
Reserve Bank of India (Asset Reconstruction Companies – Know Your Customer) Amendment Directions, 2025: The main subject of the document, amending existing KYC directions for Asset Reconstruction Companies.
PML Act, 2002: Prevention of Money Laundering Act, 2002, legislation that the Directions comply with.
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002: SARFAESI Act, the Act mentioned in the context of powers conferred to issue the directions.
CKYCR: Central KYC Records Registry, a database of KYC records. The amendment aims to clarify responsibilities regarding uploading/downloading data from this registry.
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