Aadhaar Bank Account Linking update: It is now compulsory for customers to link the national bio- metric ID Aadhaar to bank accounts, according to the updated ‘Know Your Customer (KYC)’ guidelines issued by the Reserve Bank of India. However, there is a condition. The RBI guidelines say linking a bank account to Aadhaar will be mandatory subject to the final decision of the Supreme Court on the Aadhaar-Bank Account linking matter.

Here are top points you should know about the latest RBI guidelines:

  • The KYC documents till now included: Officially Valid Document (OVD) for address proof along with the Permanent Account Number (PAN) and a recent passport size photograph.
  • The amended Customer Due Diligence (CDD) procedure of the RBI now says, “The Aadhaar number, the PAN or Form No. 60” need to be obtained from an individual who is eligible for applying for the biometric ID.
  • The new guideline is expected to facilitate a trusted environment for banking services.
  • In the new guidelines, the RBI has removed the sections relating to the use of other OVD by banks for address and identity proof.
  • Guidelines for residents of Jammu and Kashmir, Assam or Meghalaya: The residents of these states do not submit Aadhaar or proof of application of enrolment for Aadhaar. For them, new guidelines say the bank may obtain a “certified copy of an OVD containing details of identity and address and one recent photograph.”
  • OVD includes passport, driving licence, Voter’s Identity Card, job card issued by NREGA and duly signed by an officer of the state Government and letter issued by the National Population Register that contains details of name and address of the individual.
  • According to RBI, individuals, who are not residents, will not be asked to submit Aadhaar details. “From an individual who is not eligible to be enrolled for an Aadhaar number, or who is not a resident, the following shall be obtained: PAN or Form No. 60, one recent photograph and a certified copy of an OVD containing details of identity and address,” says the guidelines.
  • What if an individuals OVD does not contain updated address? The RBI says individuals may submit these documents: utility bill of not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill), property or municipal tax receipt, pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, and letter of allotment of accommodation from employer issued by State Government or Central Government Departments.

The KYC norms have been updated in the wake of Centre’s decision to update the ‘Prevention of Money Laundering’ (PML) rules in June 2017. In March, Modi government at the Centre had extended the date for submission of Aadhaar details for existing bank account holders indefinitely.


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