**Executive Summary**
The Reserve Bank of India (RBI) issued Amendment Directions on December 29, 2025, to the Reserve Bank of India (Local Area Banks – Know Your Customer) Directions, 2025, originally issued on November 28, 2025. The amendment clarifies responsibilities related to uploading and downloading customer KYC records from the Central KYC Records Registry (CKYCR). These directions come into force with immediate effect.
**Key Points / Main Content**
* **Amendment Title and Effective Date:**
* The directions are called the "Reserve Bank of India (Local Area Banks – Know Your Customer) Amendment Directions, 2025."
* These directions take effect immediately.
* **Modification to Existing Directions:**
* The amendment modifies the Reserve Bank of India (Local Area Banks – Know Your Customer) Directions, 2025.
* **Clarification on KYC Record Verification:**
* An "Explanation" is added to paragraph 64 of the original directions.
* The RE (Regulated Entity) that last uploaded or updated a customer's KYC records in CKYCR is responsible for verifying the customer's identity and/or address.
* A bank downloading and relying on KYC records from CKYCR is not required to re-verify the authenticity of the customer's identity and/or address, provided the KYC records are current and compliant with the PML Act, 2002 / PML Rules, 2005.
* The bank downloading KYC records remains responsible for all other aspects of CDD (Customer Due Diligence) procedure and provisions of these Directions, except for the verification of identity and/or address.
**Impact Analysis**
**Impact:** Local Area Banks
* **Impact** These banks that are responsible for having uploaded or updated customer KYC records to CKYCR will be responsible for verifying the customer identity and / or address
* **Action Required** Local Area Banks should ensure KYC procedures align with the new clarification, particularly regarding uploaded/updated records. Banks downloading KYC records need to maintain CDD compliance, except for identity and address verification, when the records are current and compliant with PML Act/Rules.
**Impact:** Central KYC Records Registry (CKYCR)
* **Impact** CKYCR processes remain consistent, as it serves as the central repository.
* **Action Required** No direct action is required from the CKYCR itself, but continued maintenance of current and compliant KYC records is crucial.
Key Entities Referenced
Reserve Bank of India (Local Area Banks – Know Your Customer) Amendment Directions, 2025: Primary subject of the document, amending existing KYC directions for local area banks.
Reserve Bank of India (Local Area Banks – Know Your Customer) Directions, 2025: The original KYC directions for local area banks that are being amended.
Banking Regulation Act, 1949: Act providing the legal basis for the regulations. Mentioned for powers conferred by section 35A.
Prevention of Money-Laundering Act, 2002: PML Act. Mentioned in context of compliance and KYC records.
CKYCR: Central KYC Records Registry. Addressed for clarifying responsibility of uploading entities.
RBI/2025-26/159
DOR.AML.REC.363/14.01.008/2025-26 December 29, 2025
Reserve Bank of India (Local Area Banks – Know Your Customer) Amendment
Directions, 2025
Reserve Bank had issued Reserve Bank of India (Local Area Banks – 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 35A of the Banking
Regulation Act, 1949, the Banking Regulation Act (AACS), 1949, read with section 56 of
the Act ibid., 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, 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 (Local Area Banks –
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 (Local Area Banks –
Know Your Customer) Directions, 2025 as under:(1) In paragraph 64, 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 bank 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 bank 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