Master Direction - Know Your Customer (KYC) Direction, 2016

RBI/DBR/2015-16/18

Master Direction DBR.AML.BC.No.81/14.01.001/2015-16

February 25, 2016

 (Updated as on April 20, 2018)

Master Direction - Know Your Customer (KYC) Direction, 2016

In terms of the provisions of Prevention of Money-Laundering Act, 2002 and the

Prevention of Money-Laundering (Maintenance of Records) Rules, 2005, Regulated

Entities (REs) are required to follow certain customer identification procedures while

undertaking a transaction either by establishing an account based relationship or

otherwise and monitor their transactions. 

REs shall take steps to implement

provisions of Prevention of Money-Laundering Act, 2002 and the Prevention of

Money-Laundering (Maintenance of Records) Rules, 2005, as amended from time to

time, including operational instructions issued in pursuance of such amendment(s).

The revised Master Direction is in accordance with the changes carried out in the

PML Rules vide Gazette Notification GSR 538 (E) dated June 1, 2017 and thereafter

and is subject to the final judgment of the Hon’ble Supreme Court in the case of

Justice K.S. Puttaswamy (Retd.) & Anr. V. Union of India, W.P. (Civil) 494/2012 etc.

(Aadhaar cases).