**Executive Summary**
This document outlines the Reserve Bank of India's (RBI) Amendment Directions, 2025, concerning Know Your Customer (KYC) guidelines for Rural Co-operative Banks. The amendment, dated December 29, 2025, modifies the RBI's existing KYC Directions, 2025, issued on November 28, 2025. The primary purpose is to clarify the responsibility of entities uploading and downloading customer records from the Central KYC Records Registry (CKYCR). These directions take effect immediately.
**Key Points / Main Content**
* **Amendment Overview:**
* These directions amend the Reserve Bank of India (Rural Co-operative Banks – Know Your Customer) Directions, 2025.
* The need for amendment arises from the necessity to clarify responsibilities for uploading and downloading KYC records from CKYCR based on an official memorandum from the Department of Revenue, Government of India, dated September 18, 2025.
* **Legal Basis:**
* The directions are issued under the powers conferred by various sections of the Banking Regulation Act, Payment and Settlement Systems Act, Foreign Exchange Management Act, and the Prevention of Money-Laundering Rules, among other enabling laws.
* **Short Title and Commencement:**
* The directions are named "Reserve Bank of India (Rural Co-operative Banks - Know Your Customer) Amendment Directions, 2025."
* These directions come into force with immediate effect.
* **Modification to KYC Directions:**
* An "Explanation" is inserted after sub-paragraph (10) in paragraph 64 of the original KYC directions.
* The RE that last uploaded/updated customer KYC records in the CKYCR is responsible for verifying customer identity/address.
* Banks downloading and relying on such records from CKYCR are not required to re-verify identity/address if the KYC records are current and comply with the PML Act, 2002 / PML Rules, 2005.
* Banks downloading KYC records remain responsible for all other aspects of the CDD procedure except verification of identity/address.
**Impact Analysis**
**Stakeholder: Rural Co-operative Banks (uploading KYC)**
**Impact**
* The amendment clarifies that the Rural Co-operative Bank that last updated a customer's KYC record in the CKYCR is solely responsible for verifying the identity and/or address of the customer.
**Action Required**
* Ensure proper verification processes are in place when uploading or updating customer KYC records to the CKYCR.
**Stakeholder: Rural Co-operative Banks (downloading KYC)**
**Impact**
* Downloading banks do not need to re-verify the customer's identity and/or address if the CKYCR records are current and compliant with the PML Act.
**Action Required**
* Verify KYC records downloaded from the CKYCR are current and compliant with the PML Act, 2002 / PML Rules, 2005.
* Continue to perform all other aspects of the CDD procedure, other than verifying the identity or address of the customer.
Key Entities Referenced
Reserve Bank of India (Rural Co-operative Banks – Know Your Customer) Directions, 2025: The primary policy being amended.
Reserve Bank of India: The issuing authority of the amendment directions.
PML Act, 2002: Prevention of Money-Laundering Act, 2002. Cited as the reason for implementing KYC Rules.
Banking Regulation Act, 1949: Act providing power to RBI to issue directions to banks.
CKYCR: Central KYC Records Registry; clarified responsibility of entities uploading/downloading customer records.
RBI/2025-26/163
DOR.AML.REC.367/14.01.005/2025-26 December 29, 2025
Reserve Bank of India (Rural Co-operative Banks – Know Your Customer)
Amendment Directions, 2025
Reserve Bank had issued Reserve Bank of India (Rural Co-operative 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 (Rural Co-operative
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 (Rural Co-operative
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