Sponsored Links

Follow by Email

RBI Makes Aadhaar Necessary In the New KYC Guidelines

Have you linked all your bank accounts with Aadhaar? If you haven’t, you may have to mandatory do it in near future. The Reserve Bank of India (RBI) has made it compulsory under the new Know Your Customer (KYC) guidelines to link bank accounts with Aadhaar. However, this circular will be implemented only when the Supreme Court gives its final verdict on the constitutional validity of Aadhaar. It is noteworthy that people have to furnish their Aadhaar number to open a new bank account. Applicants, who do not have an Aadhaar, have to submit the Enrollment ID generated at the time of enrollment when they visit a nearby center for Aadhaar enrollment.

Why is KYC necessary for banks?

KYC has become an integral part of the banking process. Any applicant has to submit his KYC documents to open or manage accounts with a bank. Banks also promote KYC submission because of the following reasons:
• The primary objective for KYC submission is to prevent banks from being used as the medium for money laundering
•  KYC does not allow defaulters to open fictitious/benami accounts
• KYC also helps banks in proper risk management by assessing the account holder’s financial conditions before sanctioning the loan
• It also helps in checking that the applicant does not have a criminal background or is not associated with any terrorist organisation or banned anti-social groups

Important points mentioned in the RBI Circular

• Earlier, KYC documents included Permanent Account Number (PAN), Officially Valid Documents (OVD) and a recent passport-sized photograph
• As per the new Customer Due Diligence (CDD) convention laid down by the RBI, an applicant has to provide the following:

• Aadhaar number
• PAN
• Form 60

Aadhaar will be the only acceptable proof for identity and address
All other OVDs have been revoked by the chief banking regulatory
This new procedural update is expected to provide a trusted banking environment after the recent banking frauds
Aadhaar shall not be asked from non-residents i.e. those applicants who do not reside in India as they are not eligible for an Aadhaar card
Non-residents have to furnish PAN or Form 60, one recent passport-sized photograph and an OVD containing the proof of identity and address of the applicant
The circular will however be effective only after the apex court gives a judgement in favour of the constitutional validity of Aadhaar
In case the Supreme Court decides otherwise, the circular will be rendered null and void

Officially Valid Documents (OVD) accepted by banks

Banks accept a set of documents as the proof of address or identity for KYC. These documents are as follows:
Passport
Voter’s Identity Card
Driving License
Letter issued by the National Population Register (NPR)
MGNREGA Job card duly signed by the State Government officer
RBI Makes Aadhaar Necessary In the New KYC Guidelines

People exempted from submitting Aadhaar for KYC

RBI has exempted some people from furnishing their Aadhaar for KYC compliance. The list includes people from:
Jammu and Kashmir
Assam
Meghalaya
People not residing in India

Such people do not have to submit Aadhaar or proof of Aadhaar enrollment. According to the new RBI guidelines, the bank may accept the KYC of such customer in the form of OVD and a recent photograph. However, this OVD should mandatory contain the address and identity of the applicant.

What to do if Aadhaar does not contain the updated address

There are instances when a person relocates from the address mentioned in the Aadhaar card to a new place. In such a case, you can simply get your new address updated in Aadhaar. UIDAI allows people to update their address online as well. You just have to mention your complete address at the Self-Service Update Portal (SSUP) and submit the softcopy of the document proof. You can also update your address in Aadhaar card by visiting a nearby Aadhaar Enrollment Center.

Alternatively, RBI allows applicants to submit an address proof in addition to Aadhaar. Any of the following documents can be submitted by the applicant as the current address proof:

Utility bill not more than 2 months old (Water bill, telephone bill, postpaid mobile connection, electricity bill, piped gas connection, etc.)
Receipt of the property or municipal tax
Pension documents
Pension Payment Orders (PPOs) issued to retired employees
Letter of allotment of accommodation from Central/State Government

Linking bank accounts with Aadhaar

The government had made it mandatory to link existing bank accounts with Aadhaar. The deadline for linking was extended multiple times by the government to allow all account holders to link it within the stipulated time-frame. However, the Supreme Court has extended the Aadhaar-bank account linking deadline indefinitely.

How to link Aadhaar with bank accounts

Various banks have made adequate provisions to allow their account holders to link bank accounts with Aadhaar. An account holder can perform this task through net-banking, mobile banking, SMS banking, phone banking, online link, through ATM or by visiting the branch as well.

An account holder has to share his 12-digit Aadhaar number with the bank. The bank registers the request and verifies the details provided by the applicant. Once authenticated by UIDAI, the bank links the account with Aadhaar of the applicant. A confirmation message is sent to the registered mobile number of the account holder.

In case you want to open a new bank account, you do not have to follow any of the above procedures. You just have to furnish your Aadhaar at the time of opening the bank account. Your account will be linked with Aadhaar instantly.

The guidelines set by the RBI have been released after the central government decided to upgrade the Prevention of Money Laundering Act (PMLA) in 2017. The centre would issue a fresh deadline for linking the bank account with Aadhaar after the apex court gives a verdict in this connection. Even though it is still not mandatory to link your bank account with Aadhaar but it is best advisable that you link it beforehand to prevent from last minute hassles.


Tags : kyc norms of rbi pdf, rbi kyc guidelines, aadhar kyc link, aadhar kyc registration, rbi kyc guidelines 2018, uidai, rbi kyc guidelines 2019

Share this:

Post a Comment

I am waiting for your suggestion / feedbacks, will reply you within 24-48 hours. :-)

Thanks for visit my Blog

Sponsored Links
 
Back To Top
Copyright © 2014 PradeepTomar : Mobile USSD Codes, Bank Balance Check Number.

Privacy Policy | Disclaimer | Terms of Service | Sitemap | Copyright Policy |