**Executive Summary**
This document comprises the Reserve Bank of India (Small Finance Banks – Know Your Customer) Amendment Directions, 2025, issued on December 29, 2025. It amends the existing KYC directions of November 28, 2025, specifically addressing responsibilities related to uploading and downloading customer records from the Central KYC Records Registry (CKYCR). These directions come into effect immediately.
**Key Points / Main Content**
* **Amendment Directions:**
* These directions are named the Reserve Bank of India (Small Finance Banks – Know Your Customer) Amendment Directions, 2025.
* They are effective immediately.
* They modify the Reserve Bank of India (Small Finance Banks- Know Your Customer) Directions, 2025.
* **Amendment to Paragraph 66:**
* An "Explanation" is added after sub-paragraph (10) of paragraph 66.
* The RE (Regulated Entity) that last uploaded or updated a customer's KYC records in CKYCR is responsible for verifying the identity and/or address of the customer.
* Any bank downloading and relying on these records from CKYCR is not required to re-verify the customer's identity or address, if 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 remains responsible for all aspects of CDD procedure and provisions of the directions, except verification of identity and/or address.
**Impact Analysis**
**Small Finance Banks**
* **Impact:**
* Small Finance Banks are affected by the revised responsibilities for verifying KYC information when uploading or downloading data from CKYCR.
* **Action Required:**
* Small Finance Banks must understand and implement the new "Explanation" regarding KYC verification responsibilities concerning CKYCR.
* Ensure that downloaded KYC records are current and compliant with PML Act/Rules.
* Small Finance Banks must continue to perform CDD (Customer Due Diligence) procedures, except for re-verification of identity and/or address if the KYC records meet the specified conditions.
Key Entities Referenced
Reserve Bank of India (Small Finance Banks – Know Your Customer) Directions, 2025: Principal directions being amended.
Prevention of Money-Laundering Act, 2002: Law that the Directions comply with.
Banking Regulation Act, 1949: Act that confers powers on the Reserve Bank of India.
Reserve Bank of India: Regulator issuing the amendment directions.
CKYCR: Central KYC Records Registry; purpose of amendment is to clarify responsibilities of entities uploading/downloading data from it.
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