RBI invites comments on the Draft “Reserve Bank of India (Know Your Customer) Amendment Directions, 2026”
The Reserve Bank in its Know Your Customers (KYC) Directions, 2025 has issued instructions on 'Operations of Bank Accounts and Money Mules'. The Hon'ble Supreme Court in its order dated August 4, 2026 has directed the Reserve Bank to adopt and circulate a Standard Operating Procedure (SOP) prescribing the action to be taken by banks for placing temporary debit holds on amounts or accounts linked…
The Reserve Bank of India (RBI) has invited public comments on the proposed amendments to its Reserve Bank of India (Know Your Customer) Amendment Directions, 2026. This document builds upon the 2025 KYC Directions and outlines the steps banks must take to address money-mule activity and cyber-enabled financial fraud. The Supreme Court's August 4, 2026 ruling mandates the RBI to create a Standard Operating Procedure (SOP) for banks to place temporary debit holds on accounts connected to such activities.
The draft amendment seeks feedback on these guidelines before finalizing separate instructions for various regulated entities, including commercial banks, small finance banks, payment banks, regional rural banks, and local area banks. Feedback submissions are open until October 2, 2026, via the Reserve Bank's website or email to specified addresses.
Written by urgent.news from Reserve Bank of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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