**Executive Summary**
The Reserve Bank of India issued Amendment Directions, 2025, effective immediately on December 29, 2025, to the Reserve Bank of India (Local Area Banks – Know Your Customer) Directions, 2025. The amendment clarifies responsibility for verifying customer KYC records uploaded to and downloaded from CKYCR, based on a Department of Revenue office memorandum.
**Key Points / Main Content**
* **Amendment Title:** Reserve Bank of India (Local Area Banks – Know Your Customer) Amendment Directions, 2025.
* **Effective Date:** Immediate effect.
* **Modification to Existing Directions:** Modifies the Reserve Bank of India (Local Area Banks – Know Your Customer) Directions, 2025.
* **Explanation Regarding CKYCR KYC Verification (Paragraph 64):**
* The RE that last uploaded or updated customer KYC records to CKYCR is responsible for verifying the customer's identity and/or address.
* Banks downloading and relying on such records from CKYCR are not required to re-verify the authenticity of the customer's identity and/or address, provided the downloaded KYC records are current and compliant with the PML Act, 2002/PML Rules, 2005.
* The bank downloading and relying on KYC records downloaded from the CKYCR shall remain responsible for all aspects of CDD procedure and provisions of these Directions, except verification of identity and / or address of the customer.
**Impact Analysis**
**Local Area Banks (LABs)**
* **Impact:** LABs that upload or update customer KYC records to CKYCR bear the responsibility for initially verifying the customer's identity and address. LABs that download KYC records from CKYCR, if current and compliant, are not required to re-verify identity and address, but remain responsible for all other aspects of CDD.
* **Action Required:** Ensure proper procedures for verifying KYC information are in place before uploading/updating to CKYCR. Understand the scope of CDD responsibilities when relying on downloaded KYC records.
Key Entities Referenced
Reserve Bank of India (Local Area Banks – Know Your Customer) Amendment Directions, 2025: Amendment directions issued by RBI regarding KYC norms for Local Area Banks.
Reserve Bank of India (Local Area Banks – Know Your Customer) Directions, 2025: Original directions regarding KYC norms for Local Area Banks, which are amended by the new directions.
Banking Regulation Act, 1949: Act that empowers RBI to issue directions to banks.
Prevention of Money-Laundering Act, 2002: PML Act compliance is emphasized for KYC norms.
CKYCR: Central KYC Records Registry, customer records uploaded and downloaded for KYC.
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