**Executive Summary**
This document contains the Reserve Bank of India's (RBI) Amendment Directions, 2025, concerning Know Your Customer (KYC) procedures for Small Finance Banks. These directions, effective immediately as of December 29, 2025, modify the RBI's KYC Directions of November 28, 2025, to clarify responsibilities for uploading and downloading customer KYC records from the Central KYC Records Registry (CKYCR). The aim is to streamline KYC verification while ensuring compliance with the Prevention of Money Laundering Act (PMLA).
**Key Points / Main Content**
* **Title and Commencement:**
* The directions are called the "Reserve Bank of India (Small Finance Banks – Know Your Customer) Amendment Directions, 2025".
* These directions come into force with immediate effect (December 29, 2025).
* **Modification to KYC Directions:**
* The Amendment Directions modify the Reserve Bank of India (Small Finance Banks - Know Your Customer) Directions, 2025.
* An "Explanation" is inserted into paragraph 66 after sub-paragraph (10).
* **Clarification on KYC Verification Responsibility:**
* The 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 CKYCR are 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.
* Banks downloading and relying on KYC records downloaded from the CKYCR 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**
**Small Finance Banks**
* **Impact:** These banks will have revised responsibilities regarding KYC verification when using the CKYCR.
* **Action Required:** Small Finance Banks must adjust their KYC procedures to comply with the clarified responsibilities for uploading and downloading KYC records from the CKYCR and train staff accordingly.
**Customers**
* **Impact:** Customers should experience a more streamlined KYC process, as banks relying on CKYCR records will not need to re-verify previously verified information.
* **Action Required:** No immediate action required. However, customers should ensure their KYC records are up-to-date with the RE they deal with.
Key Entities Referenced
Reserve Bank of India (Small Finance Banks – Know Your Customer) Directions, 2025: The original Directions which are being amended by this document, related to KYC norms for Small Finance Banks.
Banking Regulation Act, 1949: An act providing the framework for the regulation of banking companies in India.
Reserve Bank of India: The central bank of India, issuing the amendment directions.
Prevention of Money-Laundering Act, 2002: The law intended to combat money laundering in India
Central KYC Records Registry (CKYCR): Centralised repository of KYC records of customers
RBI/2025-26/164
DOR.AML.REC.368/14.01.007/2025-26 December 29, 2025
Reserve Bank of India (Small Finance Banks – Know Your Customer)
Amendment Directions, 2025
Reserve Bank had issued Reserve Bank of India (Small Finance 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 (Small Finance 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 (Small Finance Banks–
Know Your Customer) Directions, 2025 as under:(1) In paragraph 66, 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