The Reserve Bank of India (RBI) on November 28, 2025, issued the Reserve Bank of India (All India Financial Institutions – Know Your Customer) Directions, 2025.
The following has been stated namely: -
• It aims to strengthen and simplify customer identification and due diligence procedures applicable to regulated entities, including the All-India Financial Institutions (AIFIs). It states that low-risk individual customers whose periodic KYC updation is overdue shall now have their KYC completed by June 30, 2026, or within one year from the due date, whichever is later.
• The updated guidelines allow banks to use their authorised Business Correspondents (BCs) for self-declaration by the customer in case of no change in KYC information or only address change, with electronic recording of documents.
• Further, the directions emphasise improved digital and remote verification channels—such as video-based CIP (Customer Identification Process) and Aadhaar/OTP authentication—to facilitate ease of onboarding and updation.
• The changes are made under the powers vested in the RBI under multiple statutes, aimed at enhancing consumer convenience while maintaining integrity of customer data and anti-money-laundering compliance.
• This shall come into force from November 28, 2025.
[Notification no. - RBI/DOR/2025-26/335 DOR.AML.REC.No.254/14.01.011/2025-26]
