The Reserve Bank of India has notified the Rural Co-operative Banks – Know Your Customer (KYC) Amendment Directions, 2025, effective immediately, to clearly allocate responsibility for customer verification within the Central KYC Records Registry (CKYCR) framework. Issued in alignment with the Department of Revenue’s office memorandum dated September 18, 2025, the amendment addresses ambiguity on accountability when KYC records are uploaded to or downloaded from CKYCR. By inserting a new explanation in paragraph 64 of the KYC Directions, the RBI has clarified that the regulated entity (RE) which last uploads or updates a customer’s KYC record in CKYCR will be solely responsible for verifying the customer’s identity and/or address. Consequently, rural co-operative banks relying on current and PML-compliant CKYCR records are not required to re-verify identity or address. However, such banks continue to bear full responsibility for all other customer due diligence (CDD) obligations under the KYC Directions. The amendment aims to reduce duplication while preserving regulatory accountability.
Reserve Bank of India
Reserve Bank of India (Rural Co-operative Banks – Know Your Customer) Amendment Directions, 2025
RBI/2025-26/163
DOR.AML.REC.367/14.01.005/2025-26 | Dated: December 29, 2025
Reserve Bank had issued Reserve Bank of India (Urban Co-operative Bank – 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 (Rural Co-operative 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 (Rural Co-operative Banks – Know Your Customer) Directions, 2025 as 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
