RBI invites comments on the Draft “Reserve Bank of India (Know Your Customer) Amendment Directions, 2026”
Distilled Policy Brief
- The Supreme Court directed the Reserve Bank of India in August 2026 to adopt and circulate a Standard Operating Procedure (SOP) prescribing action by banks for placing temporary debit holds on amounts or accounts linked to money-mule activity and cyber-enabled fraud.
🎯 Prelims High-Yield Examination Points
Draft Reserve Bank of India (Know Your Customer) Amendment Directions, 2026 aim to establish an SOP for placing temporary debit holds on money-mule and cyber-fraud linked bank accounts.
⚖️ Mains Analytical & Syllabus Linkages
Institutionalizing standardized actions such as temporary debit holds balances immediate cyber-crime control with procedural rights of bank account holders.
🎯 UPSC Prelims Practice Drill
With reference to the Draft "Reserve Bank of India (Know Your Customer) Amendment Directions, 2026", consider the following statements: 1. They have been drafted following a directive from the Supreme Court of India to prescribe a Standard Operating Procedure (SOP) for placing temporary debit holds on accounts linked to cyber-enabled fraud. 2. The proposed directions are applicable to all Commercial Banks, including Regional Rural Banks and Payments Banks, as well as Urban Cooperative Banks. 3. These directions propose to amend the existing instructions on 'Operations of Bank Accounts and Money Mules' prescribed in the KYC Directions, 2025. Which of the statements given above are correct?
- [A] 1 and 2 only
- [B] 2 and 3 only
- [C] 1 and 3 only
- [D] 1, 2 and 3
▶ Reveal Official Answer & Analytical Explanation
All three statements are correct. The draft Amendment Directions, 2026, were formulated following an August 2026 directive from the Supreme Court of India to adopt an SOP for temporary debit holds on accounts linked to money-mule activity and cyber-fraud. They amend the existing KYC Directions, 2025, and apply to all Commercial Banks (including Small Finance Banks, Payments Banks, Regional Rural Banks, and Local Area Banks) and Urban Cooperative Banks.
🏛️ Historical Twin PYQ Anchor (2021)
Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.