MANU/RMIC/0005/2024
Ministry : Reserve Bank of India
Department/Board : Department of Regulation
Circular No. : DOR.AML.REC.66/14.01.001/2023-2024
RBI/2023-2024/107
Date : 04.01.2024
The Chairpersons/ CEOs of all the Regulated Entities
Dear Sir/Madam,
Amendment to the Master Direction (MD) on KYC
1. Please refer to the Master Direction (MD) on KYC dated February 25,
2016, as amended from time to time, in terms of which Regulated Entities (REs) have to undertake Customer Due Diligence (CDD), as per the process laid out therein, for their customers.
2. In the extant Direction, the definition of Politically Exposed Persons (PEPs)
is provided in sub-clause (xvii) of clause (a) of Section 3 of the MD on KYC.
However, in order to provide better clarity, it has been decided to include the
definition of PEPs as an explanation to Section 41 of the Master Direction as
under:
"Explanation: For the purpose of this Section, "Politically Exposed Persons" (PEPs) are individuals who are or have been entrusted with prominent public functions by a foreign country, including the Heads of States/Governments, senior politicians, senior government or judicial or military officers, senior executives of state-owned corporations and important political party officials."
3. Consequently, the sub-clause (xvii) of clause (a) of Section 3 of the
above quoted Master Direction has been removed. The relevant Sections of the MD
on KYC are hereby amended to reflect the changes as mentioned above.
Yours faithfully,
(Saidutta Sangram Keshari Pradhan)
General Manager