SEBI Eases Re KYC Rules for NRIs
SEBI has relaxed the India-location requirement for NRIs completing re KYC, allowing digital verification from overseas. This change removes a major compliance hurdle and makes investment account maintenance significantly easier for NRIs.
What Was the Challenge for NRIs
For many years, NRIs have faced difficulties when updating their KYC information for Indian investment accounts. Under the 2023 KYC Master Circular, intermediaries such as brokers and mutual funds had to ensure the following:
- Digital KYC could only be completed when the client was physically present in India
- The KYC app had to capture geo location and confirm that the GPS coordinates were in India
- The app needed to carry out random actions to verify that the interaction was live and not pre recorded
Because of these rules, NRIs often had to wait until they visited India to complete their re KYC or go through time consuming offline processes like embassy attestation. This resulted in delays, temporary restrictions on accounts and unnecessary compliance hurdles.
What Has SEBI Changed Now
On December 10, 2025, SEBI issued a circular (HO/38/30/12(1)2025 MIRSD SEC FATF) that relaxes the geo tagging requirement for NRIs when completing re KYC.
Key Updates in the Circular
- Physical presence in India is no longer required
SEBI has removed the requirement for NRIs to be physically present in India while completing re KYC for existing accounts.
- Digital verification can now be done from abroad
NRIs are now permitted to complete the entire due diligence process using the digital KYC app even when they are located outside India.
- GPS location must match the country in the Proof of Address
Instead of checking whether the client is in India, the GPS coordinates captured by the app must match the country mentioned in the client’s Proof of Address.
For example, if a client has provided a Proof of Address from the United Arab Emirates, the GPS coordinates should reflect a location in the UAE.
- Security checks are still mandatory
The KYC app must continue to perform the following functions to prevent misuse:
- Random user response prompts
- Timestamping
- Blocking access from spoofed IP addresses
These safeguards ensure that the process remains authentic and secure.
How This Change Helps NRIs
- Quick and Convenient Re KYC
NRIs no longer need to wait for their next India visit. Re KYC can be completed from any country using the digital platform.
- Prevention of Account Freezes
Many NRIs faced temporary account restrictions due to incomplete re KYC. This issue will now reduce significantly.
- Faster Compliance
Intermediaries such as banks and brokers will be able to complete verification faster as they no longer need to ensure that the client is located in India.
- More Practical and Investor Friendly
SEBI’s change reflects a better understanding of the practical challenges faced by NRIs who live and work outside India.
What Remains Unchanged
- The relaxation applies only to re KYC of existing clients
- New KYC onboarding rules for NRIs remain as per the existing framework
- All security and verification checks continue to apply
Conclusion
This update from SEBI is an important step toward making the compliance process smoother for NRIs.
Removing the requirement of being physically present in India makes the re KYC process more convenient, efficient and aligned with the realities of global mobility.
For NRIs, this means faster re KYC, uninterrupted access to investment accounts and a much more investor friendly experience.
By: Vishal Shah, SEBI Registered Investment Advisor and founder of Bachhat
December 11, 2025
Disclaimer: This is not a financial advice and the readers should reach out to registered investment advisors for any financial advice. Registration granted by SEBI, membership of BASL and certification from National Institute of Securities Markets (NISM) in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
