RBI New KYC Guidelines: Streamlining Financial Security 2024

The RBI has announced updates to its Know Your Customer (KYC) Master Directions, effective November 6, 2024. These changes align with Prevention of Money Laundering Rules and UAPA amendments, aiming to prevent illegal activities like money laundering and terrorism financing.

Understanding KYC and Recent Updates

Know Your Customer (KYC) is a verification process used by financial institutions
RBI announced updates to Master Directions on KYC, effective November 6, 2024
Changes align with Prevention of Money Laundering Rules and UAPA amendments
Primary goal: Prevent illegal activities like money laundering and terrorism financing
Essential process includes customer identification, document verification, and address proof

Key Amendments and Simplifications

Introduction of Unique Customer Identification Code (UCIC) for each customer

Risk-based periodic KYC updates:

- High-risk customers: Every 2 years
- Medium-risk customers: Every 8 years
- Low-risk customers: Every 10 years
No redundant KYC for existing customers within same institution
Mandatory upload of KYC data to Central KYC Records Registry (CKYCR)
Seven-day timeline for updating CKYCR with new customer information
Enhanced monitoring of high-risk accounts with frequent transactions
Change in UAPA central nodal officer designation from Additional Secretary to Joint Secretary

Domestic Money Transfer (DMT) Framework

New guidelines effective November 2024

Stricter verification requirements:

- Mandatory recording of beneficiary's name and address
- Verification of remitter's mobile number and documents
- Additional authentication factor for each transaction
Banks must comply with Income Tax Act provisions for cash deposits
Specific identifiers required for cash-based remittances
Implementation of IMPS and NEFT transaction messaging requirements

World’s First Yen Stablecoin

In a historic step for digital finance, Japan officially launched the world’s first yen stablecoin, named JPYC, on October 27, 2025. This marks a turning point in Japan’s transiti

Global Debt Crisis 2025

The global debt crisis is one of the most pressing economic challenges of the 21st century, affecting both developed and developing countries. To address this growing concern, the Sevilla Forum 20

India Trade Deficit 2025 Hits $32B

India’s merchandise trade deficit widened sharply in September 2025, reaching $32.15 billion, marking an 11-month high, according to data released by the Commerce Ministry on October 15. Thi

India Falls to 1.54 Percent in Sept 2025

India's CPI of 1.54 per cent in September 2025 has drawn significant attention as retail inflation in India fell to its lowest level since June 2017. This decline is largely attributed to

RBI UMI & Digital Finance

The Reserve Bank of India (RBI) has introduced the Unified Markets Interface (RBI UMI), a pioneering financial market infrastructure aimed at asset tokenization. Announced in 2025 by RBI Gove

ADB Lowers India’s Growth

The Asian Development Bank (ADB) has recently revised India’s economic growth forecast, a key update for students preparing for current affairs sections in exams like SSC. According to the A

RBI New Gold Loan Rules 2025

In a major step to strengthen industrial financing and support the manufacturing sector, the Reserve Bank of India (RBI) has introduced the RBI New Gold Loan Rules 2025. These reforms, announc

LEADS 2025 – State-Wise Logistics Ranking

On 20 September 2025, Union Commerce & Industry Minister Shri Piyush Goyal launched LEADS 2025 (Logistics Ease Across Different States), a landmark initiative aimed at enhancing logistics effi

India WPI Inflation Rises to 0.52%

India’s wholesale price index (WPI)-based inflation turned positive in August 2025, rising to 0.52% year-on-year. This is a significant rebound from -0.58% in August 2024, signaling an upwar

FDI India Trends 2025

Foreign Direct Investment (FDI) remains a key driver of India’s economic growth. It supports capital formation, industrial development, employment generation, and overall economic stability.