Reserve Bank of India reiterates Aadhaar, PAN mandatory for bank accounts

RBI has made Aadhaar mandatory for bank accounts till the Supreme Court passes its order on the 12-digit unique identification number

The Supreme Court had last month indefinitely extended the deadline to link Aadhaar with private and non-subsidised government services like phone numbers and bank accounts till the Constitution Bench pronounces its final verdict on the validity of the Aadhaar scheme. The central bank made the announcement in a circular with updated Know-Your-Customer norms on Friday.

"Regulated entities (REs) have to ensure that no account is opened where the RE is unable to apply appropriate customer due diligence (CDD) measures, either due to non-cooperation of the customer or non-reliability of the documents/information furnished by the customer", said the central bank. However, small accounts will be subjected to certain conditions, such as there will be a cap on the number of monthly and annual transactions.

Entities regulated by RBI, such as banks, non-banking finance companies (NBFCs), payment system providers (PSPs) and prepaid payment instrument issuers (PPI Issuer) have been instructed to formulate a KYC policy which shall include a customer acceptance policy, risk management strategies, procedure for customer identification and means to monitor transaction of customers.

Recently, the Supreme Court had asked for a "less invasive" identification document than Aadhaar but the government told the court that the Aadhaar Act could not be made simpler.

The RBI has done away with sections relating to the use of other OVD by banks for address and identity proof.


Residents of Jammu and Kashmir, Assam and Meghalaya have been exempted from this rule. The Indian Banks' Association (IBA) is likely to convene a meeting to finalise issues that would be taken up with the RBI.

RBI said the KYC norms have been updated following the government's decision to update the "Prevention of Money Laundering" (PML) rules in June 2017.

The RBI, however, warned banks that the "information collected from customers for the objective of opening of account shall be treated as confidential and details thereof shall not be divulged for the goal of cross-selling, or for any other objective without the express permission of the customer".

Accounts, both deposit and borrowal, opened using OTP (one-time password) based eKYC (electronic KYC) will not be allowed for more than one year within which biometric based e-KYC authentication will have to be completed.

Related News:



Most liked

As of May, 16 Target Corporation (TGT) EPS Estimated At $1.38
Target Corporation (Target) is a general merchandise retailer selling products through its stores and digital channels. ANALYSTS VIEWS: The current analyst consensus rating clocked at 3 on company shares based on data provided from FINVIZ.

First Merchants Corp Decreases Holdings in Chevron Co. (CVX)
Daniel Lascano increased its stake in Alleghany Corp Del (Y) by 1.78% based on its latest 2017Q4 regulatory filing with the SEC. Chevron comprises approximately 1.0% of First Merchants Corp's investment portfolio, making the stock its 26th largest holding.

Grades: OKC Thunder get blown out by the Jazz in Game 3
Ricky Rubio was lights out yet again for Utah, finishing with a triple-double and scoring 20+ points for the second straight game. After only 16 total points and three assists in Oklahoma City, Ingles provided the offensive firepower down the stretch.

Rayonier Advanced Materials (RYAM) Shareholder Linden Advisors LP Increased Stake
Martingale Asset Management L P acquired a new stake in Rayonier Advanced Materials during the 4th quarter worth $392,000. The firm has "Overweight" rating given on Thursday, March 22 by Morgan Stanley. (NYSE:BWA) rating on Monday, January 8.

Plastic pollution is poisoning our oceans and land: Mushahidullah
First celebrated in 1970, Earth Day events in more than 193 countries are now coordinated globally by the Earth Day Network . Earth Day is celebrated across the world, and the theme of Earth Day 2018 is to "End Plastic Pollution".

Davis, Charlo score KOs, Broner and Vargas draw
It was closer fight going into the championship rounds, and the punch activity climbed as the pair each tried to secure the win. The scores were 115-113 for Broner , overruled by two 114-114 scores. "We can do it again-I'm ready to fight right now".

United Kingdom authorities apologise after protesters tear tricolour during Modi's visit
"Police are investigating after an Indian flag in Parliament Square was pulled down at 15.00 hours on Wednesday, 18 April". Prime Minister Modi after his arrival in the country was greeted by some groups protesting against atrocities in India .

Frankie Edgar Earns Unanimous Decision Win Over Cub Swanson
Barboza enters the contest looking to rebound from a decision loss to current champion Khabib Nurmagomedov at UFC 219 in December. By the end of the round Lee was once again sliding into mount and attacking with endless hammerfists and chokes.

Red Sox top A's for eighth straight on Moreland's slam
At the time of his injury, Bogaerts was one of the hottest hitters in the major leagues, hitting.366 with 1.111 OPS in nine games. Mitch Moreland hit a grand slam, Jackie Bradley Jr . hit a three-run homer and the beat goes on for the Boston Red Sox .

IPL 2018 Match 18 : KXIP wins by 9 wickets
Despite tiring up, Lynn clattered Andrew Tye (2 for 30) for a couple of boundaries but eventually fell to his fellow countryman. Nitish Rana (3) was run out after the in-form southpaw fell prey to a poor mix-up with Lynn while trying to take a single.

As US, North Korea plan to meet, Iran warns against Trump deals
We can not guarantee that it is suitable for the visually or hearing impaired. Form for signing up for free newsletter.

Carl Frampton beats Nonito Donaire for WBO interim featherweight title
Frampton was quicker and more savvy, but Donaire, to his credit, remained in the hunt and in the 11th landed some good shots. Looks like WBO featherweight champion Carl Frampton is headed toward a much-anticipated scrap at Windsor Park this August.

Swaraj arrives in China for talks with Wang, SCO meet
Mr Wang was promoted to the post of State Councillor during China's annual parliamentary session last month. Meanwhile, Defence Minister Niramala Sitharaman is also scheduled to attend the SCO summit on April 24.

Zach Johnson shoots 65, ties for Valero Texas Open lead
The birdies on the 14th and 15th were important to Moore because he missed a pair of 10-foot birdie tries to start the back nine. He ranks first in the field in strokes-gained/putting through 54 holes, and second in putts per green in regulation.

Mourinho rages at Pogba & Herrera during semi-final victory
Tottenham's priority is holding onto fourth place in the Premier League to secure a third straight season in the Champions League. Ander Herrera scored the victor as Manchester United came from behind to beat Tottenham 2-1 in the FA Cup semi-final at Wembley.