RBI Eases Certified-Copy KYC for NRIs, PIOs and FPIs: What Changed on 18 September 2026
RBI amended bank KYC rules on 18 September 2026, extending overseas certified-copy options to Foreign Portfolio Investors alongside NRIs and PIOs. Here is what customers should know.
Published
The quick answer
The Reserve Bank of India amended its commercial-bank Know Your Customer directions on 18 September 2026 with immediate effect. The change clarifies the alternative route for obtaining certified copies of KYC documents from non-resident customers and expressly covers Foreign Portfolio Investors (FPIs) alongside Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs).
For eligible non-resident customers, banks may accept an original certified copy certified by specified overseas or official authorities instead of relying only on an in-person comparison with the original document. This is a documentation route; it does not remove the bank's wider customer-due-diligence obligations.
Key facts
- Date: 18 September 2026.
- Effective: immediately.
- Who is expressly covered by the alternative certified-copy route: NRIs, PIOs and FPIs.
- Commercial-bank rule: RBI/2026-27/257, DOR.AML.REC.226/14.01.002/2026-27.
- Permitted certifiers 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; Court Magistrate; Judge; or Indian Embassy/Consulate General in the country where the customer resides.
What exactly changed?
Under the general KYC rule, obtaining a certified copy means the bank compares the customer's Aadhaar-possession proof where offline verification cannot be carried out, or another officially valid document, with the original and records that comparison through an authorised bank officer. RBI's amendment retains that framework but states that NRIs, PIOs and FPIs may use the specified alternative overseas certification route.
Why this matters for non-resident borrowers and customers
Cross-border KYC can create practical friction when the customer and the Indian bank branch are in different countries. The amendment gives eligible customers a defined set of overseas certification channels. That can make document preparation more predictable, but it should not be interpreted as automatic account opening, automatic loan approval or a waiver of other checks.
For an NRI seeking an Indian home loan, KYC is only one part of underwriting. The lender may separately assess income, employment, repayment capacity, credit history, FEMA-related eligibility, property title and technical/legal documents.
What this does not mean
- It does not abolish KYC for NRIs, PIOs or FPIs.
- It does not mean any overseas person can self-certify documents.
- It does not guarantee a home loan or other credit facility.
- It does not mean every photocopy notarised in any manner must be accepted; the certification must fit the RBI-prescribed route and the bank must complete applicable due diligence.
Practical checklist before sending documents from overseas
- Ask your bank for its current KYC document list for your customer category and product.
- Confirm that the person or institution certifying the copy falls within the RBI-permitted list.
- Ensure names, addresses, passport details and other identifiers are consistent across documents; explain legitimate differences early.
- Keep a complete copy of everything submitted and the transmission/acknowledgement record.
- For a home loan, ask separately for the lender's income, banking, tax, employment and property-document checklist.
- Never send passwords, card PINs, UPI PINs or OTPs as part of a KYC document request.
Does this apply only to large commercial banks?
RBI issued corresponding KYC amendment directions on 18 September across multiple banking categories, including small finance banks, local area banks, regional rural banks, urban co-operative banks and rural co-operative banks. Customers should use the direction applicable to the institution they are dealing with rather than assuming every institution follows the commercial-bank text verbatim.
What to watch next
Banks may update customer checklists, operational instructions and overseas-document workflows to reflect the amended directions. Customers should rely on the latest RBI direction and their regulated institution's official instructions, especially before paying for notarisation or couriering original/certified documents.
FAQ
Can an NRI get KYC documents certified by an Indian Embassy or Consulate?
Yes. The amended commercial-bank direction includes the Indian Embassy or Consulate General in the country where the non-resident customer resides among the permitted certifiers for the alternative route.
Can a Notary Public abroad certify the copy?
Yes, a Notary Public abroad is included in the permitted list under the amended commercial-bank direction.
Are FPIs now expressly included?
Yes. The 18 September amendment expressly includes Foreign Portfolio Investors alongside NRIs and PIOs in the alternative certified-copy provision.
Does compliant KYC guarantee an NRI home loan?
No. KYC establishes and verifies customer identity/documentation requirements; credit approval remains a separate lender decision involving repayment capacity, credit assessment and property checks.
RiteAssetz takeaway: for overseas borrowers, a cleaner KYC route can reduce documentation friction, but it does not replace disciplined loan preparation. Confirm the lender's complete NRI documentation and property requirements before committing to a transaction.