RBI extends KYC facility to FPIs
The Reserve Bank of India (RBI) has extended an existing KYC facility available to Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) to Foreign Portfolio Investors (FPIs). The move allows banks to accept original certified copies of specified KYC documents certified by authorised authorities abroad.The amendment was issued through the RBI (Commercial Banks – Know Your Customer) Amendment Directions, 2026 and came into effect immediately.
What has changed for FPIs?
Under the amended rules, banks can alternatively accept an original certified copy of proof of possession of Aadhaar, where offline verification cannot be carried out, or an officially valid document submitted by an FPI.The copy can be certified by specified authorities outside India, giving foreign investors an alternative to having the documents certified through an India-based process.
Who can certify the documents?
The RBI has specified several authorities and officials who can certify the KYC documents. These include:Authorised officials of overseas branches of Scheduled Commercial Banks registered in IndiaBranches of overseas banks that have relationships with Indian banks
Notary Public abroad
Court Magistrate
Judge
Indian Embassy or Consulate General in the country where the non-resident customer resides
KYC requirements remain in place
The amendment provides an alternative mechanism for document certification; it does not remove the underlying KYC requirements for FPIs. Banks will continue to carry out the required customer verification and compliance procedures.The move brings FPIs within a facility that was earlier available to NRIs and PIOs and is intended to simplify the documentation process for foreign investors dealing with Indian banks.
