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ARTICLE · 17 JUNE 2025

RBI Issues New KYC Amendment Directions, 2025

AK & Partners
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The Reserve Bank of India ("RBI") on June 12, 2025 issued the Reserve Bank of India (Know Your Customer (KYC)) (Amendment) Directions, 2025 ("Amendment Directions")...

IndiaFinance and Banking
Anuroop Omkar
Anuroop Omkar

Background

The Reserve Bank of India ("RBI") on June 12, 2025 issued the Reserve Bank of India (Know Your Customer (KYC)) (Amendment) Directions, 2025 ("Amendment Directions") to modify the Reserve Bank of India (Know your Customer (KYC)) Directions, 2016 ("Master Direction"). These Amendment Directions will come into force with immediate effect on June 12, 2025.

Key updates under the Amendment Directions

  1. Extension of KYC updation window for low‑risk individuals (Para 38) The Amendment Directions adds a new clause before Paragraph 38 (a) of the Master Directions. As per the Amendment Directions, Regulated Entities ("REs") shall all low risk individual customers to complete periodic KYC up to one year after due date or upto June 30, 2026 whichever is later. Further, this is applicable for those low risk customers for whom periodic updation of KYC has already fallen due. The RE shall also subject accounts of such customers to regular monitoring. This overall

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