The Reserve Bank of India (RBI) has issued separate amendment directions for Urban Co-operative Banks (UCBs) and Rural Co-operative Banks (RCBs), amending the Know Your Customer (KYC) Directions notified on November 28, 2025. The amendments come into force with immediate effect.
According to the RBI, the amendments have been introduced to clarify the responsibility of regulated entities uploading customer KYC records to, and downloading them from, the Central KYC Records Registry (CKYCR). The changes are based on an Office Memorandum dated September 18, 2025, issued by the Department of Revenue, Government of India.
As part of the amendment, an Explanation has been inserted in paragraph 64 after sub-paragraph (10) of the KYC Directions. The Explanation states that the regulated entity which has last uploaded or updated a customer’s KYC records in the CKYCR shall be responsible for verifying the customer’s identity and/or address, as applicable.
The Directions further state that banks downloading and relying on such KYC records from the CKYCR will not be required to re-verify the authenticity of the customer’s identity and/or address, provided the records are current and compliant with the Prevention of Money Laundering Act, 2002, and the related Rules.
However, the RBI has clarified that the bank relying on CKYCR records will continue to remain responsible for all other aspects of the Customer Due Diligence (CDD) process, except for verification of identity and/or address.
The amendments have been issued under the relevant provisions of the Banking Regulation Act, the Payment and Settlement Systems Act, the Foreign Exchange Management Act, and the Prevention of Money Laundering Rules.
