KYC title, entity scope and definitions

Start with the entity actually covered by the current direction, then use its defined terms and commencement/saving provisions.

Published by Finin2min · Updated 24 October 2026

How this provision works

Paragraph 3 covers the specified commercial banks, excluding Small Finance Banks, Payments Banks and Local Area Banks from this definition. The NBFC direction has its own scope. Do not infer coverage solely from the word “bank” in a product name.
The direction applies to overseas branches and majority-owned subsidiaries to the extent compatible with local law. When standards differ, the more stringent standard is generally followed under paragraph 4; prohibitions in host law must be brought to RBI’s attention. The small-account qualification is explicit.
CDD means identifying and verifying the customer and beneficial owner using reliable independent sources. OVD, equivalent e-document, Digital KYC, V-CIP and beneficial ownership have defined meanings and are not interchangeable marketing labels.
The consolidated 2025 direction repeals the stated earlier bank KYC instructions while preserving accrued rights, liabilities and proceedings. This guide uses the bank edition updated 1 October 2026, not a frozen 2016 master direction or a draft amendment.

Practical illustration

An NBFC and a commercial bank may use similar onboarding software, but citing the bank’s paragraph 28 small-account rule does not establish that an NBFC may offer the same type of bank account.

The example is illustrative; it is not a reported company or court case.

Questions answered

Does this bank direction automatically cover Payments Banks?

No. Its paragraph 3 definition excludes them; use the separate entity direction.

Does repeal erase earlier liabilities?

No. The saving provisions preserve the specified prior rights, obligations, liabilities and proceedings.

Primary source and edition

Commercial Banks KYC Directions 2025, updated 1 October 2026; current tax-form transition cross-checked against the official e-filing department. Commercial Banks KYC Directions 2025 paragraphs 1–5,80–83; updated 1 October 2026.

Open the official instrument at this provision

Legal effect follows the instrument’s commencement and amendment provisions; a website upload date does not by itself change the law.

Related primary authorities

Scope and source editions

This explanation uses the Commercial Banks KYC Directions 2025, updated 1 October 2026, retrieved 24 October 2026. Its commercial-bank definition excludes Small Finance Banks, Payments Banks and Local Area Banks; those have separate directions. NBFCs also have a separate KYC direction and some paragraph numbers/procedures differ. Tax-form transitions are corroborated by current official e-filing guidance rather than copied from older tax-form references in the RBI consolidation.

Related resources and source collections

Additional resources retained from the original route

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