The Reserve Bank of India has issued the Local Area Banks – Know Your Customer (KYC) Amendment Directions, 2025 with immediate effect to clarify accountability in the use of the Central KYC Records Registry (CKYCR). The amendment aligns the existing KYC Directions dated November 28, 2025 with the Department of Revenue’s office memorandum of September 18, 2025 on ultimate responsibility of regulated entities under the PML Act framework. By inserting a new explanation in paragraph 64, the RBI has clarified that the regulated entity which last uploads or updates a customer’s KYC record in CKYCR will be responsible for verifying the customer’s identity and/or address. Consequently, local area banks downloading and relying on current and PML-compliant CKYCR records are not required to undertake fresh verification of identity or address. However, such banks continue to remain responsible for all other customer due diligence (CDD) obligations under the KYC Directions. The amendment seeks to eliminate duplication, improve operational efficiency, and clearly assign liability within the shared KYC ecosystem.
Reserve Bank of India
RBI/2025-26/159
DOR.AML.REC.363/14.01.008/2025-26 | Dated: December 29, 2025
Reserve Bank of India (Local Area Banks – Know Your Customer) Amendment Directions, 2025
Reserve Bank had issuedReserve Bank of India (Local Area Banks – Know Your Customer) Directions, 2025 dated November 28, 2025 (hereinafter referred to as the Directions) in compliance of the provisions of the PML Act, 2002 and the Rules made thereunder. There is a need to amend the Directions to clarify the responsibility of entities uploading customer records to and downloading the same from CKYCR, based on the office memorandum (OM) titled “CKYCR and the ultimate responsibility of REs – reg.” issued by the Department of Revenue, Govt of India, dated September 18, 2025.
2. Accordingly, in exercise of the powers conferred by sections 35A of the Banking Regulation Act, 1949, the Banking Regulation Act (AACS), 1949, read with section 56 of the Act ibid., section 10(2) read with section 18 of Payment and Settlement Systems Act 2007 (Act 51 of 2007), section 11(1) of the Foreign Exchange Management Act, 1999, Rule 9(14) of the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005, and all other enabling laws in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified.
3. Short Title and Commencement
(1) These Directions shall be called the Reserve Bank of India (Local Area Banks – Know Your Customer) Amendment Directions, 2025.
(2) These Directions shall come into force with immediate effect.
4. These Amendment Directions modify the Reserve Bank of India (Local Area Banks – Know Your Customer) Directions, 2025as under:
(1) In paragraph 64, the following “Explanation” is being inserted after sub-paragraph (10):
“Explanation: The RE that has last uploaded or updated the customer’s KYC records in the CKYCR shall be responsible for verifying the identity and / or address of the customer, as applicable. Accordingly, any bank downloading and relying on such records from the CKCYR shall not be required to re-verify the authenticity of the customer’s identity and / or address, provided the KYC records downloaded from CKYCR are current and compliant with the PML Act, 2002 / PML Rules, 2005. The bank downloading and relying on KYC records downloaded from the CKCYR shall remain responsible for all aspects of CDD procedure and provisions of these Directions, except verification of identity and / or address of the customer.”
(Veena Srivastava)
Chief General Manager
