The Reserve Bank of India (RBI) on November 28, 2025, issued the Reserve Bank of India (Rural Co-operative Banks – Know Your Customer) Directions, 2025.
The following has been stated namely: -
• These draft directions aim to align rural co-operative banks with the global standards set by the Financial Action Task Force (FATF) to combat money laundering and terrorist financing.
• The directions outline comprehensive measures, including the establishment of a Customer Acceptance Policy, implementation of Customer Identification Procedures (CIP), and the adoption of Customer Due Diligence (CDD) processes.
• Additionally, they emphasize the identification of beneficial owners, ongoing due diligence, and the maintenance of records.
• The guidelines also detail reporting requirements to the Financial Intelligence Unit – India and stipulate obligations under international agreements.
• The RBI has invited stakeholders to submit their comments on the draft directions.
• This shall come into force from November 28, 2025.
[Notification no. - RBI/DOR/2025-26/316 DOR.AML.REC.No.235/14.01.005/2025-26]
