RBI Updates KYC Norms for Authorised Persons | Strengthens Entity-Wise Compliance

A.P. (DIR Series) Circular No. 16; Dated: 28.11.2025

The Reserve Bank of India (RBI) has issued updated instructions to align Know Your Customer (KYC) requirements for Authorised Persons (APs) with the newly introduced entity-wise regulatory framework. The changes aim to ensure uniformity, strengthen customer due diligence, and enhance oversight across all categories of APs.

1. Entity-Wise KYC Compliance

RBI has clarified that the applicable KYC requirements for Authorised Persons will now depend on the regulatory category under which they fall:

1.1 APs Regulated by the Department of Regulation (DoR)

APs that are subject to the Department of Regulation must adhere to their respective KYC directions issued by the DoR. These entities must ensure that their customer onboarding and verification processes comply with the updated norms under the applicable regulatory framework.

1.2 APs Not Covered Under DoR Regulation

Authorised Persons not regulated by the DoR are required to comply with the RBI (NBFC–KYC) Directions, 2025. These directions provide the baseline standards for customer identification, verification, and ongoing monitoring.

2. Compliance Requirements for Agents and Franchisees

APs must also ensure that all agents, franchisees, and other associated service providers adhere to the relevant KYC requirements. This responsibility includes:

Conducting adequate due diligence on agents
Ensuring adherence to regulatory KYC norms during transactions
Monitoring compliance on a continuous basis

3. Modification to Related Master Directions

With the issuance of these updated KYC instructions, RBI has explicitly stated that the related Master Directions stand modified to align with the revised framework.

4. Immediate Applicability

The instructions take immediate effect, requiring all Authorised Persons to review their KYC processes and implement the necessary changes without delay.