The Reserve Bank of India has issued a new circular revising the KYC compliance framework for all Authorised Persons (APs) dealing in foreign exchange, money changing, overseas investments, remittances, and MTSS operations. With the earlier 2016 KYC Master Direction now replaced, APs must follow entity-specific KYC directions applicable to them. Those regulated by the Department of Regulation must comply with their respective KYC frameworks, while APs not regulated by DoR must adhere to the “RBI (Non-Banking Financial Companies – Know Your Customer) Directions, 2025.” The circular also requires APs to ensure that their agents, sub-agents, and franchisees follow the same updated norms. The directions have been issued under FEMA sections 10(4) and 11(1), and related Master Directions—including those on money changing, overseas investment, remittance facilities, and MTSS—are being amended. The instructions take immediate effect, and APs must inform all constituents and customers accordingly.
Reserve Bank of India
RBI/2025-26/99
A.P. (DIR Series) Circular No. 16
November 28, 2025
All Authorised Persons
Madam / Sir,
Compliance with Know Your Customer (KYC) norms
Attention of Authorised Persons is invited to instructions contained in Section I and Section VI of ‘Master Direction – Money Changing Activities’; Para 27(4) of ‘Master Direction – Overseas Investment’; Para 6.5 of ‘Master Direction – Other Remittance Facilities’; and Para 3.2.b and 8(i) of ‘Master Direction–Money Transfer Service Scheme (MTSS)’ on compliance with KYC norms.
2. ‘Master Direction – Know Your Customer (KYC) Direction, 2016’ has since been substituted with regulatory instructions applicable separately to each type of entity regulated by the Department of Regulation, Reserve Bank of India. Therefore, it is directed as under:
(a) Authorised Persons, which are regulated by the Department of Regulation, Reserve Bank of India, shall be governed by the respective ‘Know Your Customer’ directions as applicable to them.
(b) Authorised Persons, which are not regulated by the Department of Regulation, Reserve Bank of India, shall be governed by ‘Reserve Bank of India (Non-Banking Financial Companies – Know Your Customer) Directions, 2025’.
(c) Authorised Persons shall ensure compliance of directions, as applicable to them, by their agents/ sub-agents/franchisees.
3. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
4. The instructions contained in Master Direction – Money Changing Activities’, ‘Master Direction – Overseas Investment’’, ‘Master Direction – Other Remittance Facilities’, and ‘Master Direction–Money Transfer Service Scheme (MTSS) are being modified
5. The above instructions are applicable with immediate Authorised Persons may bring the contents of this circular to the notice of their constituents and customers concerned.
Yours faithfully,
(Dr. Aditya Gaiha)
Chief General Manager-in-Charge
