RBI eases KYC rules for FPIs, allows overseas-certified documents

The change has been introduced through the Reserve Bank of India (Commercial Banks – Know Your Customer) Amendment Directions, 2026, issued on September 18, 2026. Similar amendments have also been issued for other categories of banks, extending the facility across the banking sector.

Explaining the change, RBI said the existing KYC Directions allowed banks to alternatively obtain an original certified copy from Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs), subject to certification by specified authorities.

“The extant instructions have since been reviewed and it has been decided to extend the above facility in case of Foreign Portfolio Investors (FPIs),” the RBI said.

The amended provision now specifically includes FPIs within the scope of the facility. RBI has retained the existing requirement for certification while providing FPIs with an alternative route for submitting their KYC documents.

The amended provision states: “Provided that in case of Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs), as defined in Foreign Exchange Management (Deposit) Regulations, 2016 {FEMA 5(R)}, and Foreign Portfolio Investors (FPIs), the bank may alternatively obtain the original certified copy, certified by any one of the following...”

The specified authorities include authorised officials of overseas branches of Scheduled Commercial Banks registered in India, branches of overseas banks with which Indian banks have relationships, a Notary Public abroad, a Court Magistrate, a Judge, or an Indian Embassy/Consulate General in the country where the non-resident customer resides.

“‘Certified Copy’, Obtaining the certified copy by the bank shall mean comparing the copy of the proof of possession of Aadhaar number where offline verification cannot be carried out or the officially valid document produced by the customer with the original, and an authorised officer of the bank shall record the comparison on the copy as per the provisions contained in the Act.”

The amendment is effective immediately from September 18, 2026.

The change does not eliminate KYC requirements for FPIs. Instead, it provides an additional mechanism for certification of documents, allowing eligible overseas investors to have their documents certified through specified authorities outside India.

The move is expected to make the KYC documentation process more practical for FPIs that maintain banking relationships in India but are based overseas.