What is the Master Direction on Know Your Customer?

The Master Direction on Know Your Customer (KYC) is a set of guidelines issued by the Reserve Bank of India (RBI) to banks and financial institutions operating in India. It lays down the regulatory guidelines for conduct of customer identification and due diligence processes, risk categorization and documentation requirements for various types of customers such as individuals, companies, trusts, partnerships, etc. The objective of the KYC guidelines is to prevent money laundering, terrorist financing, and other illegal activities through the banking and financial channels. The Master Direction on KYC is regularly updated by the RBI to keep pace with changing regulatory requirements and evolving risk scenarios in the financial sector.

This mind map was published on 19 May 2023 and has been viewed 134 times.