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Need Aadhaar for a Bank Account but there is a condition

Banks can now use Aadhaar for KYC verification but not without the customer's consent. In case you don't have any other ID proof, you can give your consent to the bank to use your Aadhaar for account opening. The Reserve Bank of India said
last week that it has updated its list of documents eligible for identification of individuals. The central banks specifies the Know Your Customer (KYC) norms that banks and other entities regulated by the central bank have to follow for various customer services, including opening of bank accounts.

In its amended Master Direction on KYC, RBI said, "Banks have been allowed to carry out Aadhaar authentication/ offline-verification of an individual who voluntarily uses his Aadhaar number for identification purpose."

The 'Proof of possession of Aadhaar number' has been added to the list of Officially Valid Documents (OVD), RBI said further. For customer identification of individuals, those, who want to receive any benefit or subsidy under direct benefit transfer (DBT), the bank should obtain the customer's Aadhaar and may carry out its e-KYC authentication.

For non-DBT beneficiary customers, the Regulated Entities (REs) should obtain a certified copy of any OVD containing details of customer's identity and address along with one recent photograph.

"REs shall ensure that the customers (non-DBT beneficiaries) while submitting Aadhaar for Customer Due Diligence, redact or blackout their Aadhaar number in terms of sub-rule 16 of Rule 9 of the amended PML Rules," RBI document said. 

For non-individual customers, PAN/Form No 60 of the entity (for companies and Partnership firms - only PAN) should be obtained apart from other entity related documents. The PAN/Form No 60 of the authorised signatories shall also be obtained. Form 60 is required to be submitted by an individual who does not have a Permanent Account Number (PAN). 

"For existing bank account holders, PAN or Form No 60 is to be submitted within such timelines as may be notified by the Government, failing which account shall be subject to temporary ceasing till PAN or Form No 60 is submitted," the RBI said.

(With PTI inputs)

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