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

A visitor gives a thumb impression to withdraw money from his bank account with his Aadhaar or Unique Identification card during a Digi Dhan Mela held to promote digital payment in Hyderabad

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:

  • Don't Like Liverpool But They'll Put Roma Out, Manchester United Legend Admits

    Don't Like Liverpool But They'll Put Roma Out, Manchester United Legend Admits

    Patrick Schick scored his first goal in Serie A with Roma today. "We respect always the intensity of the season", the manager said.

    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.

    Russia says Trump invited Putin to US during phone call

    He asked the United States and its allies to prove that their all missiles hit the targets. In fact, the US vehicle can withstand a direct hit from a rocket launcher.
  • Memorial service set for woman killed in Southwest flight

    Memorial service set for woman killed in Southwest flight

    Riordan, 43, was partially sucked out of a shattered window, and passengers had to pull her back inside the plane. United Continental Holdings (UAL.N) said that it had begun inspections earlier after a recommendation from CFM.
    Coleman devastated by Sunderland relegation

    Coleman devastated by Sunderland relegation

    Wolves are two points shy of 100 for the season with games against Sheffield Wednesday and Sunderland still to come. I have been here two minutes, the supporters have been here for years I can only imagine how they are feeling.
    T'wolves Host Rockets In Game Three Tomorrow

    T'wolves Host Rockets In Game Three Tomorrow

    Following a narrow, three-point win in the series opener, the Rockets responded with a 20-point blowout victory in Game 2. Butler stayed in the game, but he did look a step slow to start the third quarter before really heating up later.
  • Iran vows to retaliate if United States  withdraws nuke deal

    Iran vows to retaliate if United States withdraws nuke deal

    The following day Mr Macron will have the rare honour of addressing a joint session of Congress. US sanctions against Iran will resume unless Trump issues new waivers by the May 12 deadline.
    United Kingdom  authorities apologise after protesters tear tricolour during Modi's visit

    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 .
    Red Sox top A's for eighth straight on Moreland's slam

    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 .
  • Peel Hunt Reaffirms "Buy" Rating for GB Group (GBG)

    Ticker's shares touched GBX 784 during the last trading session after 1.08% change.Pearson plc has volume of 3.00 million shares. Therefore 63% are positive. 47 are the (LON:ITV)'s analyst reports since October 27, 2017 according to StockzIntelligence Inc.
    'Utterly overjoyed': Pippa Middleton is reportedly pregnant with her first child

    'Utterly overjoyed': Pippa Middleton is reportedly pregnant with her first child

    Allegedly, Pippa's father-in-law carried out two sexual attacks between 1998 and 1999 in France and the Carribean island of St. Meanwhile, with a baby on the way, many were convinced that Pippa is going to be a doting mother just like her sister Kate .
    As US, North Korea plan to meet, Iran warns against Trump deals

    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.


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.

Alexis Sanchez reveals his text message exchange with former boss Arsene Wenger
Arsenal are through to the Europa League semi-finals and winning the competition would be the ideal way for Wenger to bow out.

Corrected - Blast at election centre in Afghan capital, at least four dead
The bomber detonated an explosive vest, killing 31 and wounding 54 other while destroying cars and shattering windows. This will be the first time in Afghani history that elections will be held on the basis of formal voters lists.

Two unidentified gunmen shoot dead Palestinian lecturer in Malaysia
A senior Palestinian official on Saturday called for an global investigation into Israeli violence against Palestinians. It says it also aims to assert the right of refugees to return to their former homes in Israel .

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.

Lyrid meteor shower peaks this weekend: when and where to see it
While that leaves plenty of opportunities to spot one, it falls very short to the brightest shower ever observed. It sounds like it's going to be quite a show, so make your plans now - you're not going to want to miss this.

FAA Issues Inspection Order for Boeing 737 Engines
An FAA spokesman said the agency disputed that it had not agreed with European regulators on the response to the engine issue. The European agency had given airlines nine months to check engines, while U.S. regulators still were considering what to do.

Marquez gets three-place penalty for blocking Vinales
Marquez said tire choice and conditions will be critical. "We'll try and remain fully concentrated". Now Iannone will move to the middle of row one with the outside spot taken by Zarco.

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".

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.

Syracuse fraternity permanently expelled over anti-Semitic, racist video
Syverud goes on to say in the video that campus police interviewed 38 people as part of the investigation and charges will follow. He plans to provide an update on Monday and wants the university to be inclusive and welcoming to everyone .

Yankees Will Call Up Top Prospect Gleyber Torres
Tim Naehring, the Yankees' assistant general manager, has been following Scranton/Wilkes-Barre and keeping an eye on Torres. I enjoy every game, every opportunity. "At every position I feel comfortable", said Torres, who added he has no preference.

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.