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

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  • Last Updated on 1 December, 2025

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RBI KYC norms 2025

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.

Click Here To Read The Full Circular

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied