The Reserve Bank of India (RBI) has made an important change to its Know Your Customer (KYC) rules for Foreign Portfolio Investors (FPIs). The central bank has extended to FPIs a facility that was earlier available to Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs).
The change has been announced through the Reserve Bank of India (Commercial Banks – Know Your Customer) Amendment Directions, 2026, issued on September 18, 2026. The new directions have come into effect immediately.
What Has RBI Changed?
Under the earlier KYC rules, banks could accept an original certified copy of certain KYC documents for NRIs and PIOs. RBI has now decided to extend this facility to Foreign Portfolio Investors as well.
This means FPIs can now submit an original certified copy of their required KYC documents instead of the usual document comparison process, subject to the conditions specified by RBI.
Who Can Certify the Documents?
For NRIs, PIOs and FPIs, the original certified copy can be certified by any of the following:
- Authorised officials of overseas branches of Scheduled Commercial Banks registered in India
- Branches 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.
What Does This Mean for FPIs?
The change can make the KYC process more convenient for FPIs operating from outside India. They can now use certified copies of their documents through the specified overseas authorities or institutions.
The RBI amendment modifies paragraph 5(1)(v) of the Reserve Bank of India (Commercial Banks – Know Your Customer) Directions, 2025.
New KYC Rule in Simple Words
Earlier, the special facility for submitting an original certified copy was available to:
NRIs + PIOs
After the latest RBI amendment, it is available to:
NRIs + PIOs + FPIs
The amendment is effective immediately from September 18, 2026.
