RBI Amends KYC Directions, Includes Accessibility Safeguards and Aadhaar Face Authentication [Read Directions]

The ReserveBank of India (RBI) issued Notification No. RBI/2025-26/75 DOR.AML.REC.46/14.01.001/2025-26 dated August 14, 2025, announcing the Reserve Bank of India (Know Your Customer (KYC)) (2nd Amendment) Directions, 2025.

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These amendments update the existing KYC Directions of 2016 to make the customer verification process more inclusive, especially for persons with disabilities (PwDs), and to formally recognise Aadhaar Face Authentication as a valid method of verification.

Key changes in the amendment:

Inclusion of Persons with Disabilities (PwDs)

• KYC rules now explicitly include PwDs under the category of “financially or socially disadvantaged” persons.
• No KYC application, whether for onboarding or periodic update, can be rejected without proper consideration.
• Officers must record clear reasons for any rejection.

Liveness checks made inclusive

• Verification steps such as “liveness checks” must not result in the exclusion of persons with special needs.
• This addresses accessibility issues like the earlier requirement of blinking during digital KYC.

The RBI has also clarified that liveness checks must not exclude persons with special needs. This is in line with the Supreme Court’s April 2025 order, which directed regulators to make digital KYC processes accessible to people with visual impairments, facial disfigurements, or other disabilities

Another important change expands the situations where KYC is required. Now, customer due diligence will also be mandatory for occasional transactions of Rs. 50,000 or more, whether done in a single payment or through multiple linked transactions, and for any international money transfer.

A link to Frequently Asked Questions (FAQs) on KYC is now part of the Directions to provide clarity to customers and institutions.

These changes mean that financial institutions must train their staff to be sensitive to the needs of PwDs, avoid rejecting applications for technicalities that could be addressed through alternative methods, and ensure all digital KYC platforms are accessible.

This step not only aligns India’s KYC framework with accessibility laws under the Rights of Persons with Disabilities Act, 2016 but also moves closer to building an inclusive and customer-friendly financial system.

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