**Executive Summary**
The Reserve Bank of India issued an amendment on December 29, 2025, to its "Know Your Customer" (KYC) Directions, 2025 for Regional Rural Banks. This amendment clarifies the responsibility for verifying customer KYC records uploaded to and downloaded from the Central KYC Records Registry (CKYCR), as per the Department of Revenue office memorandum dated September 18, 2025. The amendment comes into force with immediate effect.
**Key Points / Main Content**
* **Amendment Title:** Reserve Bank of India (Regional Rural Banks – Know Your Customer) Amendment Directions, 2025.
* **Effective Date:** These Directions come into force with immediate effect.
* **Modification of Existing Directions:** These Amendment Directions modify the Reserve Bank of India (Regional Rural Banks – Know Your Customer) Directions, 2025.
* **Clarification on KYC Verification Responsibility:**
* The RE that last uploaded or updated customer KYC records in the CKYCR is responsible for verifying the customer’s identity and/or address.
* Banks downloading and relying on KYC records from CKYCR are not required to re-verify the authenticity of customer identity and/or address, provided the records are current and compliant with the PML Act, 2002 / PML Rules, 2005.
* Banks downloading KYC records from the CKYCR remain responsible for all aspects of CDD procedures and provisions of these Directions, except verification of identity and/or address of the customer.
**Impact Analysis**
**Regional Rural Banks (RRBs)**
* **Impact:** RRBs are directly affected by the clarification on KYC verification responsibilities. The RRB uploading/updating KYC information is responsible for verification. Downloading RRBs can rely on the verification status of current CKYCR records.
* **Action Required:** RRBs must ensure compliance with the amended directions, particularly regarding the uploading and downloading of KYC records and adherence to CDD procedures.
**Customers**
* **Impact:** Customers will likely see no significant changes as the amendment primarily affects inter-bank processes.
* **Action Required:** No direct action is required from customers.
Key Entities Referenced
Reserve Bank of India (Regional Rural Banks – Know Your Customer) Directions, 2025: The principal directions being amended by these amendment directions, pertaining to KYC norms for Regional Rural Banks.
Banking Regulation Act, 1949: A law granting regulatory powers to the Reserve Bank of India over the banking sector.
Reserve Bank of India: The central bank of India, responsible for issuing and regulating the Amendment Directions.
PML Act, 2002: Prevention of Money-Laundering Act, 2002, related to KYC/AML regulations.
RBI/2025-26/162
DOR.AML.REC.366/14.01.004/2025-26 December 29, 2025
Reserve Bank of India (Regional Rural Banks – Know Your Customer) Amendment
Directions, 2025
Reserve Bank had issued Reserve Bank of India (Regional Rural 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 (Regional Rural 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 (Regional Rural 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