Amendments To Master Direction – Know Your Customer (KYC) Direction, 2016

The Reserve Bank of India (the ‘RBI') vide notification no. RBI/2023-24/24 dated April 28, 2023 has amended the Master Direction - Know Your Customer (KYC) Direction, 2016 (‘KYC Directions'), as applicable to Regulated Entities (the ‘REs').

I. REASONFORAMENDMENT:

As per the RBI, the amendment has been brought in with the following objective to:

1. align the instructions with the recent amendments carried out in the Prevention of Money Laundering (Maintenance of Records) Rules, 2005 (‘PMLA Rules');
2. incorporate instructions in terms of the Government Order dated January 30, 2023, titled “Procedure for Implementation of Section 12A of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 (‘WMD Act');