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RBI Seeks Public Feedback on Draft KYC Amendment Rules for Bank Accounts
The Reserve Bank of India has released draft rules for temporary debit holds on bank accounts linked to cyber fraud and money mules.
- Reviewed by
- Shravya Mishra
- Published
This brief was drafted with the help of an AI system from the official source listed below, then checked against that source and approved by Shravya Mishra before publication. How we work.
What happened
The Reserve Bank of India (RBI) has issued the draft "Reserve Bank of India (Know Your Customer) Amendment Directions, 2026" for public comments. This follows an order from the Supreme Court directing the central bank to adopt a Standard Operating Procedure (SOP) for banks to place temporary debit holds on amounts or accounts linked to money-mule activity and cyber-enabled financial fraud. The draft proposes to amend existing KYC (Know Your Customer, the identity verification process used by banks) directions for all commercial banks, including small finance banks, payments banks, regional rural banks, local area banks, and urban cooperative banks.
What it means for you
This announcement is a draft stage for public consultation. It outlines how banks may be instructed to handle accounts suspected of being used in cyber fraud or money mule operations through temporary debit freezes. The announcement does not state the final rules yet, as the central bank is currently inviting feedback from the public, stakeholders, and regulated entities before finalising the directions.
What to do
If you wish to share your feedback or comments on the draft amendment directions, you can submit them on or before October 2, 2026. Submissions can be made through the 'Connect 2 Regulate' section on the official RBI website or by email using the subject line 'Feedback on Draft Reserve Bank of India (Know Your Customer) Amendment Directions, 2026'. Otherwise, no action is required from ordinary households at this stage.
Common questions
What is the deadline to submit comments on the draft directions?
Comments may be submitted on or before October 2, 2026.
How can the public submit feedback?
Feedback can be submitted through the 'Connect 2 Regulate' section on the RBI website or by email with the specified subject line.
Sources
This is general information for education, not investment, tax or legal advice. Rules and rates change; check the official source before acting. Read the full disclaimer.
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