<h1>RBI Draft Guidelines: New Private Banks Must Be Indian-Owned; KYC, AML, CFT Rules Apply to All Banks in India.</h1> The Reserve Bank of India (RBI) has issued draft guidelines for licensing new banks in the private sector, stipulating that only entities or groups owned and controlled by residents can promote banks. The RBI has also established Know Your Customer (KYC), Anti-Money Laundering (AML), and Combating Financing of Terrorism (CFT) guidelines to prevent misuse of banks for money laundering or terrorist financing. All banks, including foreign ones operating in India, must follow customer identification procedures and report suspicious transactions to the Financial Intelligence Unit-India (FIU-IND). These measures were detailed by a government official in a recent Lok Sabha session.