RBI has, on November 6, 2024, amended with immediate effect the Master Directions on Know Your Customer (‘KYC’) Directions, 2016 (‘KYC Amendments’) to align the framework with the Prevention of Money Laundering (Maintenance of Records) Rules, 2005, updated  by way of Gazette Notification on July 19, 2024, and to incorporate changes from Corrigendum dated April 22, 2024, regarding Section 51A of the Unlawful Activities (Prevention) Act, 1967 (‘UAPA’), alongside revisions to the existing KYC procedure.

The KYC Amendments set out the following amendments: (i) Regulated Entities (‘REs’) must apply customer due diligence procedures at the unique customer identification code level to avoid redundant KYC checks for customers seeking additional services; (ii) REs are required to enhance monitoring for high-risk accounts, consolidating explanatory details under relevant sub-paragraphs to ensure clarity; (iii) the term ‘periodic updation’ has been uniformly integrated across applicable paragraphs; (iv) REs must integrate KYC data with the Central KYC Records Registry (‘CKYCR’) by incrementally uploading or updating KYC records with the CKYCR within seven days of receiving new information. The CKYCR must notify all reporting entities that have interacted with the customer about such updates, ensuring accurate KYC records; and (v) REs must retrieve KYC data using the KYC identifier to minimize repeat documentation requests, unless retrieved data is incomplete, outdated or requires enhanced due diligence. Additionally, the KYC Amendments have updated the designation of the central nodal officer under the UAPA from ‘additional secretary’ to ‘joint secretary’.