The Reserve Bank of India issued amendment directions to its Local Area Banks Know Your Customer framework to clarify responsibility for verifying customer identity and address when KYC records are uploaded to, and downloaded from, the Central KYC Records Registry (CKYCR), drawing on a Department of Revenue office memorandum on “CKYCR and the ultimate responsibility of REs”. The amendment inserts an explanation into paragraph 64 specifying that the regulated entity (RE) that last uploaded or updated a customer’s KYC record in CKYCR is responsible for verifying the customer’s identity and or address, as applicable. Any bank downloading and relying on current CKYCR records that are compliant with the Prevention of Money-Laundering Act, 2002 and the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005 is not required to re-verify the authenticity of the customer’s identity and or address, but remains responsible for all other aspects of customer due diligence and compliance with the directions. The amendment directions take effect immediately.
Reserve Bank of India 2025-12-29
Reserve Bank of India amends Local Area Banks KYC rules so the last CKYCR uploader bears identity and address verification
The Reserve Bank of India amended its Local Area Banks Know Your Customer framework to clarify responsibility for verifying customer identity and address in the Central KYC Records Registry (CKYCR). The regulated entity that last updated a customer's KYC record in CKYCR is responsible for verification, while banks relying on compliant CKYCR records are exempt from re-verification but must ensure other due diligence and compliance.