**Executive Summary**
The Reserve Bank of India issued the "Reserve Bank of India (Local Area Banks – Know Your Customer) Amendment Directions, 2025" on December 29, 2025. These directions amend the "Reserve Bank of India (Local Area Banks – Know Your Customer) Directions, 2025" issued on November 28, 2025, clarifying responsibilities for uploading and downloading customer KYC records from the Central KYC Records Registry (CKYCR). The amendment takes effect immediately.
**Key Points / Main Content**
* **Amendment Title:** Reserve Bank of India (Local Area Banks – Know Your Customer) Amendment Directions, 2025.
* **Effective Date:** The directions come into force with immediate effect (December 29, 2025).
* **Amendment to KYC Directions:**
* **Clarification of KYC Responsibility:**
* The regulated entity (RE) that last uploaded or updated a customer's KYC records in the CKYCR is responsible for verifying the identity and/or address of the customer.
* Banks downloading and relying on KYC records from the CKYCR are not required to re-verify the authenticity of customer identity and/or address if the downloaded records are current and compliant with the PML Act, 2002 / PML Rules, 2005.
* The bank downloading and relying on KYC records from the CKYCR remains responsible for all aspects of CDD procedures and provisions of these Directions, excluding verification of identity and/or address of the customer.
**Impact Analysis**
**Local Area Banks (LABs)**
* **Impact:** LABs need to understand the revised guidelines regarding KYC verification responsibilities, especially regarding the use of CKYCR records.
* **Action Required:** Update internal procedures to align with the amended directions, particularly concerning the uploading, downloading, and reliance on CKYCR data for KYC purposes.
**Banks downloading KYC records from CKYCR**
* **Impact:** Banks may rely on the KYC records previously uploaded, removing the need to re-verify details previously verified.
* **Action Required:** Ensure downloaded KYC records are current, compliant with prevailing legislation and that staff are aware of their responsibilities regarding CDD procedure.
Key Entities Referenced
Reserve Bank of India (Local Area Banks – Know Your Customer) Amendment Directions, 2025: The primary subject of the document, these directions amend existing KYC guidelines for Local Area Banks in India.
Reserve Bank of India (Local Area Banks – Know Your Customer) Directions, 2025: The original KYC Directions which are being amended by the Amendment Directions, 2025.
Prevention of Money-Laundering Act, 2002: Relevant legislation compliance with which is mandated by the KYC directions.
Banking Regulation Act, 1949: Act granting powers exercised by Reserve Bank of India to issue the directions.
CKYCR: Central KYC Records Registry, the online system for uploading and downloading customer KYC records. Clarification of responsibility for verifying data is a motivation for amendment.
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