INCOME TAX21 Sept 2026
RBI eases KYC rules for FPIs, allows overseas-certified documents, here’s what foreign investors need to know | Mint
The RBI has eased KYC document rules for foreign portfolio investors (FPIs). From 18 September 2026, Indian banks can accept original certified copies checked by approved authorities overseas. This helps FPIs avoid arranging certification in India. But full KYC checks still apply. If you handle FPI accounts, note this route and keep all customer verification steps unchanged.
Key Statutory Highlights
- The RBI issued the change on 18 September 2026 through the Commercial Banks – Know Your Customer Amendment Directions, 2026, and it came into effect immediately.
- Indian banks can now accept KYC documents certified by recognised overseas authorities such as a Notary Public abroad, a Court Magistrate, a Judge, or an Indian Embassy or Consulate General.
- The change does not remove the KYC requirement, as banks must still carry out customer identification and verification checks on foreign portfolio investors.
Actionable Advice for Taxpayers / Founders:If your business or bank deals with FPI clients, ask your bank whether it accepts these overseas-certified KYC documents, and keep your existing verification steps in place. Please check with a professional before changing your process.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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