SEBI Proposes Digital Re-KYC for NRIs, Relaxing Geo-Tagging Rules

The Securities and Exchange Board of India (SEBI) has proposed easing a key condition that has made digital Know Your Customer (KYC) updates hard for Non-Resident Indians (NRIs). In a draft circular now open for public comment, SEBI suggests allowing NRIs to complete re-KYC from abroad without being physically located in India during digital onboarding or video client identification. The proposal keeps location checks but shifts them from India-only verification to country-level matching with the client’s proof of address. SEBI set the comment window through November 13, 2025.

At present, under the Master Circular on KYC dated October 12, 2023, intermediaries must confirm the client is in India during digital onboarding, typically verified by geo-tagging and a time-stamped video call. Market participants argued this standard creates hurdles for existing NRI clients who live full-time overseas and only need to update details, not open a brand-new account. SEBI’s draft responds to that feedback by preserving robust checks while removing the India-location mandate for NRIs.

Under the proposal, intermediaries’ applications must still capture GPS coordinates (latitude and longitude) of the client’s device during the live interaction. Those coordinates must match the country listed in the client’s proof of address. The systems must also block connections from spoofed IP addresses to stop false location claims. In short, the regulator would keep digital guardrails while removing unnecessary travel for millions of Indian-origin investors who live in countries such as the United States 🇺🇸 and Canada 🇨🇦.

According to analysis by VisaVerge.com, the shift reflects SEBI’s broader push to make compliance smoother for overseas participants, including Foreign Portfolio Investors (FPIs), without lowering safeguards that protect market integrity. For many NRIs, especially those balancing jobs, family, and time zones abroad, the change would remove a common pain point: having to be in India—or trying to mimic that condition—just to refresh KYC details already on file.

Policy changes — key points

If adopted, the proposal would apply to re-KYC and KYC modifications done through digital onboarding or Video Client Identification (V-CIP). Key elements include:

• NRIs would no longer need to be physically present in India during digital KYC updates.
• Intermediaries must capture live GPS coordinates and match them with the country listed on the client’s proof of address.
• Systems must include controls that prevent IP spoofing to ensure genuine connections and reduce fraud risk.
• The public can submit feedback on the draft until November 13, 2025.

SEBI’s stated aim is to simplify compliance while keeping transparency and security. The move mirrors post-pandemic trends in digital verification, where regulators worldwide balance remote access with identity assurance.

For financial market intermediaries—brokers, mutual fund houses, and other KYC registrars—the change would require updates to apps and backend systems. The effort may reduce customer friction and support better client retention among NRI account holders.

Impact on investors and intermediaries

For NRIs:
– Immediate benefit: no more travel or location-related workarounds for routine KYC updates.
– Example scenarios:
– An engineer in California could complete re-KYC from the United States 🇺🇸 if GPS coordinates match the country on the proof of address.
– A nurse in Toronto could update a phone number or add a tax identifier faster and more predictably.

For intermediaries:
They would still carry a heavy compliance load and must:

1. Capture and store time-stamped video and geo-coordinates during V-CIP.
2. Cross-check device location with the country on official address proof.
3. Maintain anti-spoofing measures for IP addresses and network integrity.
4. Keep audit trails showing why a KYC update was accepted or flagged.

These checks are crucial because location data can be manipulated. By combining live video, geo-tagging, and network checks, SEBI aims to keep fraud risk low while granting flexibility.

Operational and legal considerations

Firms may need to update consent flows to inform clients about location capture and data storage, consistent with Indian privacy rules and cross-border data handling standards. Practical steps intermediaries should prepare for:

• Ensure apps can read accurate GPS data during live sessions.
• Map coordinates to the correct country with reliable geolocation services.
• Detect and block VPNs or masked IPs that could fake location.
• Document controls, train staff on location verification, and maintain clear logs for regulatory review.

The draft emphasizes transparency and auditability — firms must be able to show controls and logs if regulators request them.

Context and broader significance

SEBI’s plan fits within a larger framework of KYC modernization in the securities market. The Master Circular sets consistent rules across onboarding, verification, and ongoing updates. Geo-tagging and video checks — introduced to fight impersonation and misuse — remain part of the toolkit. The proposed tweak does not remove these tools; it aligns the location rule with the reality of NRIs who are, by definition, outside India.

KYC is a legal process that verifies a person’s identity, address, and sometimes source of funds. It helps prevent money laundering, fraud, and identity theft. NRIs frequently maintain bank accounts, demat accounts, mutual fund holdings, or portfolio investments in India, so KYC maintenance is ongoing. SEBI’s move seeks a middle path: avoid excessive rigidity that inconveniences investors while preserving safeguards that protect the market.

What NRIs and intermediaries should do now

NRIs:
– Monitor announcements from brokers, mutual fund platforms, and KYC Registration Agencies (KRAs).
– Ensure proof of address is current and matches the country of residence.
– Allow device location access during V-CIP and avoid using VPNs or masked connections that could trigger anti-spoofing blocks.
– Consider submitting comments on the draft if you have views before November 13, 2025.

Intermediaries:
– Begin technical assessments to confirm apps can:
– Read accurate GPS data during live sessions.
– Map coordinates to the correct country reliably.
– Detect and block VPNs or masked IPs that could fake location.
– Update consent flows and privacy notices to reflect location capture and storage.
– Prepare audit logs and staff training for the revised procedures.

Sources and next steps

The full KYC framework is set out in SEBI’s Master Circular, available here: SEBI Master Circular on KYC (October 12, 2023). The current proposal would amend the geo-tagging expectation for NRI re-KYC without discarding verification.

SEBI has not announced a final adoption date. The next steps depend on feedback from intermediaries, investor groups, and technology providers. If accepted, the change could become a template for other digital checks where country-level verification meets risk standards. VisaVerge.com reports regulators globally are moving toward precise, risk-based controls rather than one-size-fits-all rules.

For now, the message to NRIs is straightforward: follow the comment process if you have views, keep your documents ready, and expect a more convenient KYC update path ahead—one that respects both your distance from India and the need to keep markets safe.