New RBI KYC Guidelines 2025
New RBI KYC Guidelines 2025
RBI Updates KYC Rules: What Banks and Customers Need to Know
The Reserve Bank of India (RBI) has made fresh changes to its KYC (Know Your Customer) Directions, 2016. These updates, called the 2nd Amendment Directions, 2025, aim to make customer onboarding and compliance easier, fairer, and more inclusive. Let’s go step by step to understand what has changed and how it will impact both banks and customers.
1. RBI’s KYC FAQs Made More Accessible
👉 What Changed?
RBI has officially included a link to its Frequently Asked Questions (FAQs) on KYC in the Master Directions.
👉 Why This Matters?
Earlier, many customers and even bankers struggled to interpret KYC rules. By giving a direct FAQ link, RBI ensures that everyone has easy access to clarifications straight from the regulator.
💡 Example: If a bank asks you for an additional document that seems unnecessary, you can cross-check RBI’s FAQ section to see if it’s actually required.
2. Inclusion of Persons with Disabilities (PwDs)
👉 What Changed?
Banks must now treat Persons with Disabilities (PwDs) fairly while processing KYC. Applications cannot be rejected without proper reasoning, and the officer must record why it was rejected.
👉 Why This Matters?
This prevents unfair denial of banking services to people with disabilities.
💡 Example: A visually impaired customer opening an account cannot be refused service just because the officer feels “it will be difficult.” If rejected, the officer must provide a clear, valid reason in writing.
3. Higher Value Transactions Now Under KYC Lens
👉 What Changed?
KYC must also be carried out during:
- Any occasional transaction worth ₹50,000 or more (single or multiple linked transactions).
- Any international money transfer.
👉 Why This Matters?
This closes loopholes where people avoided full KYC by doing “occasional” large transactions.
💡 Example: If you walk into a bank to deposit ₹55,000 in cash, the bank must complete your KYC—even if you don’t have a regular account there. Similarly, sending money abroad requires full KYC verification.
4. Aadhaar Face Authentication Added
👉 What Changed?
KYC authentication can now also be done through Aadhaar Face Authentication, in addition to existing methods like OTP and fingerprint.
👉 Why This Matters?
This gives more flexibility and options, especially for people who face difficulty with fingerprints or OTPs.
💡 Example: An elderly customer whose fingerprints don’t scan properly can now complete KYC via face authentication linked with Aadhaar.
5. Liveness Checks Must Not Exclude People with Special Needs
👉 What Changed?
When banks use liveness checks (to confirm a person is physically present in front of the camera during video KYC), it must be designed in a way that does not exclude persons with special needs.
👉 Why This Matters?
This ensures that technology-driven KYC doesn’t discriminate against differently-abled individuals.
💡 Example: If a customer with mobility issues cannot nod or blink as part of a video liveness test, the bank must offer an alternative verification method.
6. Updated List of RBI Circulars
👉 What Changed?
RBI has added two more circular references to the Appendix of the KYC Directions.
👉 Why This Matters?
This is more technical—meant for banks and NBFCs to stay aligned with older instructions. It won’t directly affect customers, but ensures consistency in compliance.
What This Means for You
- For Customers:
- You now have stronger rights, especially if you are differently-abled.
- Any large transaction (₹50,000+) or international transfer will need full KYC.
- More flexible options like Aadhaar face authentication make the process smoother.
- For Banks/NBFCs:
- Officers must record reasons for KYC rejection.
- They must adopt inclusive practices in digital KYC.
- Compliance officers need to update their manuals with the new references.
✅ In Short: RBI’s amendments make the KYC process clearer, fairer, and more inclusive, ensuring no one is unfairly excluded from banking while also tightening monitoring for large or international transactions.
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