RBI eases FPI KYC rules by allowing Indian banks to accept original certified copies of specified Know Your Customer documents certified by recognised authorities overseas.
The change took effect from September 18, 2026.
RBI Eases FPI KYC Rules
The Reserve Bank of India has extended to Foreign Portfolio Investors the alternative KYC certification facility that was earlier available to Non-Resident Indians and Persons of Indian Origin.
Under the amended framework, FPIs can have specified KYC documents certified through recognised overseas channels and submit the original certified copies to an Indian bank.
This provides an alternative to completing the certification process in India.
The amendment was introduced through the RBI (Commercial Banks–Know Your Customer) Amendment Directions, 2026, and came into force with immediate effect from September 18.
Who Can Certify FPI KYC Documents Abroad?
The RBI framework recognises several authorities for certifying the relevant documents.
These include authorised officials of overseas branches of Scheduled Commercial Banks registered in India and branches of overseas banks that have relationships with Indian banks.
Other recognised authorities include a Notary Public abroad, Court Magistrate, Judge, Indian Embassy or Consulate General in the country where the non-resident customer resides.
This means an FPI based outside India can use an eligible certification channel in its country of residence before submitting the original certified document to an Indian bank.
KYC Requirements Still Apply to FPIs
The RBI change does not remove the underlying KYC obligations for foreign portfolio investors. Banks must continue to carry out the applicable customer identification and verification procedures.
The amendment instead provides an additional method for handling certified documents.
RBI’s existing definition of a certified copy also continues to apply, including requirements concerning comparison with the original document and recording the verification by an authorised bank officer.
Why the FPI KYC Change Matters
The revised facility can make documentation more convenient for overseas investors participating in Indian financial markets, particularly when their KYC documents need certification before being submitted to an Indian bank.
The facility has also been extended across RBI’s KYC directions covering commercial banks, small finance banks, local area banks, regional rural banks, rural co-operative banks and urban co-operative banks.
For FPIs, the key change is therefore in the certification process rather than the KYC requirement itself. Recognised overseas authorities can now provide the certification route specified under the amended RBI framework.
