RBI Puts Aadhaar At Centre Of KYC Process Subject To Supreme Court Ruling
The Reserve Bank of India has updated its master direction on KYC or ‘Know Your Customer’ norms, putting Aadhaar at the center of the due diligence process. Any change in norms, however, will be subject to a final decision by the Supreme Court on matters related to Aadhaar, the banking regulator clarified.
According to the new norms, banks must obtain the following documents from an individual while establishing an account based relationship.
- The Aadhaar number from an individual eligible for enrollment of Aadhaar
- Permanent Account Number or Form No. 60
- Where an Aadhaar number has not been assigned, proof of enrollment for Aadhaar
Residents of Jammu and Kashmir, Assam and Meghalaya have been exempted from this rule and other customer due diligence options have been provided.
The norms further state that customers already having account-based relationships with a bank must submit the Aadhaar number before the date notified by the government. If they fail to do so, the account shall cease to be operational.
The customer, eligible to be enrolled for Aadhaar and obtain the Permanent Account Number, except one who is a resident in the State of Jammu and Kashmir or Assam or Meghalaya, already having an account-based relationship with REs (regulated entities), shall submit the Aadhaar number and Permanent Account Number/Form 60 by such date as may be notified by the central government.RBI Master Circular on KYC Norms
The norms have been updated following the government’s decision to update the ‘Prevention of Money Laundering’ rules in June 2017, said the RBI.
The changes will have no immediate impact and will be subject to the Supreme Court’s ruling in the Aadhaar matter.
On March 31. the government also extended the date for submission of Aadhaar details for existing bank account holders indefinitely. A date would be notified after the final judgement in the petition challenging Aadhaar being heard before the Supreme Court, the government had said.