RBI Redefines KYC Compliance for Authorised Persons

The Reserve Bank of India has revised KYC compliance requirements for Authorised Persons following the replacement of the Master Direction – KYC Direction, 2016. KYC norms will now apply based on the specific regulatory category of the Authorised Person.

Entities regulated by the RBI’s Department of Regulation must follow the KYC directions applicable to them, while others will be governed by the RBI (NBFC – KYC) Directions, 2025. Authorised Persons are also responsible for ensuring KYC compliance by their agents and franchisees.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13169

Regulatory Reset: RBI Unifies Directions, Retires Obsolete Circulars

The Reserve Bank of India has streamlined its regulatory framework by issuing 244 consolidated Master Directions under the Department of Regulation (DoR), as announced in its press release dated November 28, 2025. These Master Directions integrate instructions issued by the DoR and the erstwhile departments that have since been merged into it.

As part of this consolidation exercise, instructions that are no longer relevant have been excluded. Consequently, the RBI has withdrawn and repealed 9,445 circulars that have either been subsumed into the new Master Directions or rendered obsolete, with immediate effect.

The RBI has clarified that the repeal will not affect any actions already taken or initiated under the withdrawn directions, which will continue to be governed by the provisions applicable at the time.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13170

 RBI Updates KYC Compliance Framework for Payment Systems

The Reserve Bank of India has repealed the RBI Master Direction on KYC dated February 25, 2016, with immediate effect. As a result, all references to the repealed direction in instructions applicable to Payment System Providers and Payment System Participants will now be construed as references to the Reserve Bank of India (Commercial Banks – Know Your Customer) Directions, 2025.

This update ensures alignment of KYC requirements for payment systems with the latest regulatory framework. A detailed list of consequential changes to relevant circulars has been issued by the RBI. The direction has been notified under the provisions of the Payment and Settlement Systems Act, 2007.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13171

LRS Reporting Goes Direct: RBI Expands CIMS Access

The Reserve Bank of India has extended the requirement for submission of the ‘LRS Daily Return’ to Authorised Dealer (AD) Category-II banks/entities and Full-Fledged Money Changers (FFMCs) by granting them direct access to the Centralised Information Management System (CIMS).

With effect from January 1, 2026, AD Category-II entities and FFMCs must submit the LRS Daily Return (including nil returns, where applicable) directly on CIMS. This change enables them to independently verify the PAN-wise cumulative remittances made by resident individuals under the Liberalised Remittance Scheme (LRS) during the financial year before processing new transactions.

Consequently, AD Category-II entities and FFMCs may discontinue routing LRS transaction reporting through AD Category-I banks. All Authorised Persons are advised to follow the CIMS user manual for return submission and coordinate with the RBI’s Foreign Exchange Department at the respective Regional Office for onboarding or operational support. The relevant Master Direction under FEMA, 1999 will be updated to reflect this change.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13172

BSBD Accounts Reimagined: RBI’s Latest Push for Inclusive Banking

The Reserve Bank of India has issued the Reserve Bank of India (Commercial Banks – Responsible Business Conduct) Amendment Directions, 2025, finalising revised norms for Basic Savings Bank Deposit (BSBD) Accounts. The amendments follow public consultation on the draft directions issued in October 2025 and aim to improve affordability, usability, and customer service for BSBD account holders.

Under the revised framework, commercial banks (excluding Small Finance Banks, Payments Banks, and Local Area Banks) must offer BSBD accounts as a standard banking service with no minimum balance requirement and a defined set of free facilities, including cash deposits, electronic receipts, debit cards, cheque books, internet and mobile banking, passbooks or statements, and a minimum number of free withdrawals. Digital payment transactions such as UPI, NEFT, and IMPS will not be counted as withdrawals.

The directions also strengthen customer choice by ensuring that facilities are provided only on request, enable easy conversion of existing savings accounts into BSBD accounts, and require banks to clearly publicise BSBD features and distinctions. The amendments take effect from April 1, 2026, or earlier if adopted by a bank, reinforcing RBI’s commitment to inclusive and responsible banking practices.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13173

 RBI Enhances BSBD Accounts for Small Finance Banks

The Reserve Bank of India has issued the RBI (Small Finance Banks – Responsible Business Conduct) Amendment Directions, 2025, updating norms for Basic Savings Bank Deposit (BSBD) Accounts to enhance financial inclusion and customer convenience.

Small Finance Banks are required to offer BSBD accounts as a standard service with no minimum balance and a set of free facilities, including debit cards, cheque books, internet and mobile banking, and free withdrawals. Digital payment transactions such as UPI and NEFT will not be counted as withdrawals.

The amendments strengthen customer choice, allow easy conversion of savings accounts into BSBD accounts, and require banks to clearly communicate BSBD features. The directions take effect from April 1, 2026, or earlier upon adoption by the bank.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13174

 RBI Empowers Payments Banks to Boost Financial Inclusion with BSBD Accounts

The Reserve Bank of India has issued the RBI (Payments Banks – Responsible Business Conduct) Amendment Directions, 2025, finalising revised norms for Basic Savings Bank Deposit (BSBD) Accounts to promote financial inclusion and improve customer service.

Under the updated framework, Payments Banks must offer BSBD accounts as a standard banking service with no minimum balance and a set of free facilities, including cash deposits, electronic receipts, debit cards, cheque books, internet and mobile banking, passbooks or statements, and a minimum of four free withdrawals per month. Digital payment transactions such as UPI, NEFT, RTGS, and IMPS will not count toward withdrawal limits.

Facilities are provided on customer request, and banks must allow easy conversion of existing savings accounts to BSBD accounts. Payments Banks are also required to clearly publicise BSBD features and differences from other savings accounts. The amendments take effect from April 1, 2026, or earlier if adopted by the bank, reinforcing RBI’s commitment to affordable and inclusive banking.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13175

Advancing Financial Inclusion: RBI Revises BSBD Guidelines for Local Area Banks

The Reserve Bank of India has issued the RBI (Local Area Banks – Responsible Business Conduct) Amendment Directions, 2025, finalising revised norms for Basic Savings Bank Deposit (BSBD) Accounts applicable to Local Area Banks (LABs). The amendments follow public consultation on the draft BSBD directions released in October 2025 and aim to strengthen financial inclusion and improve customer experience.

Under the revised framework, LABs must offer BSBD accounts as a standard banking service with no minimum balance requirement and a defined set of free facilities, including cash deposits, electronic receipts, debit cards, cheque books, internet and mobile banking, passbooks or statements, and a minimum number of free withdrawals. Digital payment transactions such as UPI, NEFT, RTGS, and IMPS will not be counted as withdrawals.

The directions reinforce customer choice by ensuring facilities are provided only on request, enable seamless conversion of existing savings accounts into BSBD accounts, and require LABs to clearly communicate BSBD features and distinctions. The amendments will take effect from April 1, 2026, or earlier upon adoption by the LAB.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13176

RBI Strengthens BSBD Accounts for Regional Rural Banks

The Reserve Bank of India has issued the RBI (Regional Rural Banks – Responsible Business Conduct) Amendment Directions, 2025, finalising revised norms for Basic Savings Bank Deposit (BSBD) Accounts applicable to Regional Rural Banks (RRBs). The amendments follow public consultation on the draft BSBD directions issued in October 2025 and aim to strengthen financial inclusion and customer convenience.

Under the revised framework, RRBs must offer BSBD accounts as a standard banking service with no minimum balance requirement and a defined set of free facilities, including cash deposits, electronic receipts, debit cards, cheque books, internet and mobile banking, passbooks or statements, and a minimum number of free withdrawals. Digital payment transactions such as UPI, NEFT, RTGS, and IMPS will not be counted as withdrawals.

The directions reinforce customer choice by ensuring facilities are provided only on request, enable easy conversion of existing savings accounts into BSBD accounts, and require RRBs to clearly publicise BSBD features and distinctions. The amendments will come into effect from April 1, 2026, or earlier if adopted by the RRB.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13177

RBI Enhances Customer-Friendly BSBD Accounts Across UCBs

The Reserve Bank of India has issued the RBI (Urban Co-operative Banks – Responsible Business Conduct) Amendment Directions, 2025, finalising revised norms for Basic Savings Bank Deposit (BSBD) Accounts applicable to Urban Co-operative Banks (UCBs). The amendments follow public consultation on the draft BSBD directions released in October 2025 and are aimed at strengthening financial inclusion and improving customer service.

Under the revised framework, UCBs must offer BSBD accounts as a standard banking service with no minimum balance requirement and a defined set of free facilities, including cash deposits, electronic receipts, debit cards, cheque books, internet and mobile banking, passbooks or statements, and a minimum number of free withdrawals. Digital payment transactions such as UPI, NEFT, RTGS, and IMPS will not be counted as withdrawals.

The directions reinforce customer choice by ensuring facilities are provided only on request, enable easy conversion of existing savings accounts into BSBD accounts, and require UCBs to clearly communicate BSBD features and distinctions. The amendments will take effect from April 1, 2026, or earlier upon adoption by the UCB.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13178

Strengthening Financial Inclusion: RBI’s 2025 BSBD Reforms for Rural Co-operative Banks

The Reserve Bank of India has issued the Rural Co-operative Banks (Responsible Business Conduct) Amendment Directions, 2025, strengthening the framework for Basic Savings Bank Deposit (BSBD) Accounts to further financial inclusion and improve customer service.

The amendments reaffirm BSBD accounts as zero-balance savings accounts with essential facilities—such as deposits, electronic and cheque receipts, debit cards, cheque books, digital banking, statements/passbooks, and a minimum number of free withdrawals—provided free of charge. Customers may opt for additional facilities voluntarily, without any minimum balance requirement.

The Directions also enable easier conversion of existing savings accounts to BSBD accounts, clarify treatment of digital payment transactions, reinforce compliance with KYC/AML norms, and require RCBs to actively publicise BSBD features.

These changes will take effect from April 1, 2026, or earlier upon adoption by the RCB, reinforcing RBI’s focus on accessible and responsible rural banking.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13179

Stronger Credit Data, Smarter Decisions: RBI Tightens Credit Reporting Norms

The Reserve Bank of India (Commercial Banks – Credit Information Reporting) Amendment Directions, 2025 introduce tighter norms to enhance the accuracy, timeliness, and reliability of credit data. Effective July 1, 2026, the amendments require commercial banks to report credit information to Credit Information Companies (CICs on the 9th, 16th, 23rd, and month-end), with a monthly full file submission by the 5th of the following month and incremental updates in between.

Banks must also report Central KYC (CKYC) numbers wherever available and promptly rectify and re-submit any rejected data. CICs will monitor compliance and report delays to the RBI. Together, these measures strengthen credit reporting discipline and improve transparency across the credit ecosystem.

https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=13180