**Executive Summary**
This document contains amendment directions issued by the Reserve Bank of India (RBI) on December 29, 2025, regarding Know Your Customer (KYC) procedures for Small Finance Banks. These directions amend the "Reserve Bank of India (Small Finance Banks – Know Your Customer) Directions, 2025" issued on November 28, 2025. The amendments clarify responsibilities related to uploading and downloading customer KYC records from the Central KYC Records Registry (CKYCR) and come into force with immediate effect.
**Key Points / Main Content**
* **Amendment Title:** Reserve Bank of India (Small Finance Banks – Know Your Customer) Amendment Directions, 2025.
* **Effective Date:** Immediate.
* **Modification:** These directions modify the "Reserve Bank of India (Small Finance Banks – Know Your Customer) Directions, 2025".
* **Responsibility Clarification (CKYCR):**
* The Regulated Entity (RE) that last uploaded or updated a customer's KYC records in the CKYCR is responsible for verifying the customer's identity and/or address.
* Any bank downloading and relying on KYC records from CKYCR is not required to re-verify identity or address, provided the downloaded records are current and compliant with PML Act, 2002 / PML Rules, 2005.
* The downloading bank remains responsible for all other aspects of CDD procedures and provisions of the existing directions, excluding verification of identity and/or address.
**Impact Analysis**
**Small Finance Banks**
* **Impact:** Small Finance Banks need to adapt their KYC procedures based on the clarification provided regarding CKYCR usage and verification responsibilities. They need to understand their responsibility for all other CDD procedures.
* **Action Required:** Review and update KYC procedures, particularly those related to CKYCR, to align with the amendment directions.
**Reserve Bank of India (RBI)**
* **Impact:** RBI is responsible for the oversight of Small Finance Banks to ensure their compliance with the updated KYC Directions.
* **Action Required:** Ensure Small Finance Banks comply with updated KYC directions.
**Customers of Small Finance Banks**
* **Impact:** Direct impact is minimal, as the amendment primarily clarifies inter-bank responsibilities for KYC.
* **Action Required:** No direct action is required from customers.
Key Entities Referenced
Reserve Bank of India (Small Finance Banks– Know Your Customer) Directions, 2025: The principal directions being amended by the current document, concerning KYC norms for Small Finance Banks.
PML Act, 2002: The Prevention of Money-Laundering Act, 2002, legislation related to money laundering.
Banking Regulation Act, 1949: The primary law governing banking operations in India.
Reserve Bank of India: The central bank of India, issuing the amendment directions.
CKYCR: Central KYC Records Registry, a central repository of KYC records.
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