RBI KYC Guidelines: 16 Questions & Answers

The Prevention of Money-Laundering Act, 2002 and the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005

The capturing of a live photo of the customer and their officially valid document or proof of possession of Aadhaar, along with the latitude and longitude of the location.

Regular monitoring of transactions in accounts to ensure they are consistent with knowledge about the customer, their business, risk profile, and source of funds.

A bank that has no physical presence in the country where it is incorporated and licensed, and is unaffiliated with a regulated financial group.

Regulated Entities (REs) shall ensure that decision-making functions of determining compliance with KYC norms are not outsourced.

The RE shall not pursue the CDD process and instead file a Suspicious Transaction Report (STR) with FIU-IND.

The risk categorization shall be kept confidential and shall not be revealed to the customer to avoid tipping off.

All transactions are allowed, and updation must be done within one year of its falling due or upto June 30, 2026, whichever is later.

REs shall not open accounts of such professional intermediaries who are bound by any client confidentiality that prohibits disclosure of the client details to the RE.

CDD of all office bearers shall suffice for opening the account, and CDD of all members may be undertaken at the time of credit linking.

Allowing foreign remittances not exceeding USD 1,000 and a cap of rupees fifty thousand on aggregate.

REs must ensure the details of such customers are registered on the DARPAN Portal of NITI Aayog.

When India is a member of the organisation and the countermeasures have been accepted by the Central Government.

They shall not be paid if presented beyond the period of three months from the date of such instruments.

Third parties recruited by criminals to launder the proceeds of fraud schemes, such as phishing and identity theft.

They must identify and assess the Money Laundering (ML) and Terrorist Financing (TF) risks associated with them.