RBI Simplifies KYC Rules For Foreign Portfolio Investors, Eases Certification Requirements For Document Copies

The Reserve Bank of India has streamlined Know Your Customer (KYC) regulations for foreign portfolio investors, enabling Indian banks to accept certain documents certified by authorized individuals outside the country. This amendment, implemented through the RBI (Commercial Banks–Know Your Customer) Amendment Directions, 2026, became effective immediately.

Previously, this facility was only available to non-resident Indians and persons of Indian origin. However, extending it to foreign portfolio investors (FPIs) is anticipated to simplify documentation requirements for overseas investors engaging in Indian financial markets. According to the RBI, FPIs will no longer be required to have their KYC documents certified within India. They can utilize recognized certification channels in their country of residence and submit the original certified copies to an Indian bank.

To certify FPI documents, authorized officials can either be based at overseas branches of Scheduled Commercial Banks registered in India or at foreign bank branches that have correspondent relationships with Indian banks. Other recognized authorities include a Notary Public abroad, a Court Magistrate, a Judge, an Indian Embassy, or a Consulate General in the investor's country. Despite the eased certification process, banks remain obligated to conduct thorough KYC checks on foreign portfolio investors.

The RBI has maintained its existing definition of a certified copy. In cases where Aadhaar offline verification is not completed, banks must compare the submitted proof of Aadhaar possession or another officially valid document with the original. An authorized bank officer must document this verification process in accordance with the applicable regulations. Currently, FPI outflows from Indian equities have reached ₹23,676 crore during September through Friday.