RBI Eases FPI KYC Rules: The Reserve Bank of India has made the KYC paperwork process easier for Foreign Portfolio Investors (FPIs). Under the new rule the Indian banks can accept original certified copies of certain KYC documents when they’ve been certified by authorised officials or authorities outside India.
The change was announced on September 18, 2026, through the RBI (Commercial Banks – Know Your Customer) Amendment Directions, 2026. It became effective immediately. RBI said it reviewed the existing rule and decided to extend a facility already available to Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) to FPIs as well.
The overseas certification option under this part of the KYC rules was available to NRIs and PIOs before. But RBI has now added FPIs to the same provision which means an FPI based outside India can get eligible documents certified in its country of residence. It doesn’t always have to complete the certification process in India before giving the documents to its bank.
The amended rule says the bank can alternatively obtain an original certified copy from an FPI. The certification can be done by any of the authorities recognised under the RBI rules.
These include authorised officials of overseas branches of Scheduled Commercial Banks registered in India. It also covers branches of overseas banks that have relationships with Indian banks. A Notary Public abroad, Court Magistrate, Judge, or an Indian Embassy or Consulate General in the country where the non-resident customer lives can also certify the documents.
The basic meaning of a certified copy hasn’t been removed or changed. Normally, the bank compares the customer’s document with the original. This applies to proof of possession of Aadhaar where offline verification can’t be done, or to an officially valid document.
After checking it, an authorised bank officer has to record the comparison on the copy as required under the law. For FPIs there is now another route. Instead of the usual process, the bank can obtain the original certified copy after it has been certified by one of the approved authorities outside India.
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The new RBI rule shouldn’t be seen as an end to KYC checks for foreign investors. FPIs still have to meet the applicable customer identification and verification requirements.
The main change is about how the documents can be certified and submitted. The KYC framework itself remains in place. For an overseas FPI, this can reduce some of the practical work involved in arranging documents. It can use recognised channels in its country of residence and then submit the original certified copy to the Indian bank.
FPIs often manage their investment and compliance work across different countries. Getting documents certified can therefore take extra time and involve more steps. RBI’s amendment gives banks an additional way to handle this paperwork while keeping the required KYC checks in place.
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