Title, applicability and definitions
Freeze the regulated-entity class and defined terms before applying any onboarding control.
KYC and Customer Due Diligence
Paragraph-wise corpus with Finin2min interpretation, examples, evidence controls and practical Q&A. Source: Commercial Banks KYC Directions, 2025 and NBFC KYC Directions, 2025.
16 unitsBR Act/RBI Act with PMLA and PML RulesCurrent-source controlled
Module register
Board-approved KYC policy and designated responsibility
The Board framework must cover customer acceptance, risk management, CIP, monitoring and reporting.
Customer Acceptance Policy
Prohibit anonymous or fictitious accounts, apply risk parameters and avoid exclusion through mechanical documentation.
Risk management and ML/TF risk assessment
Risk category must be reasoned, reviewable and linked to monitoring intensity.
Customer Identification Procedure and third-party reliance
Trigger CIP at account commencement, qualifying occasional transactions, suspicion and structuring; ultimate responsibility remains with the RE.
CDD for individuals
Obtain and verify permitted identity/address records, PAN/Form 60 and business/financial information as applicable.
Digital records and V-CIP
Preserve consent, live interaction, geotag/audit trail, official verification and authorised-official evidence.
Sole proprietorships and legal entities
Verify entity existence, authorised persons and ownership/control structure.
Beneficial owner and special entity types
Apply legal-person-specific ownership/control tests and document the reasoning.
Ongoing due diligence and periodic updation
Monitor transactions against customer profile; review risk at least every six months and update KYC by risk cycle.
Enhanced due diligence for non-face-to-face onboarding
Prefer V-CIP, verify address/PAN, restrict mobile changes and monitor as high risk until stronger verification.
Politically Exposed Persons
Identify PEPs, establish source of funds/wealth, obtain senior approval and intensify monitoring.
Professional intermediaries and simplified cases
CDD reliance does not transfer ultimate responsibility; simplified routes require exact eligibility.
Record management and FIU reporting
Preserve retrievable CDD and transaction records and file complete CTR/STR and other reports within applicable timelines.
Sanctions, UAPA and international obligations
Screen customers and beneficial owners against current lists and retain escalation evidence.
FATCA/CRS, correspondent banking and wire transfers
Apply tax-information, respondent-bank, shell-bank and originator/beneficiary data controls.