RBI makes Aadhaar key to KYC compliance |
The Reserve Bank of India (RBI) has amended its `know your customer` (KYC) guidelines, making Aadhaar key to conducting customer due diligence by banks and finance companies. The RBI has also done away with sections relating to the use of other “officially valid documents” by lenders for address and identity proof but has said that the new norms are subject to the final judgment of the Supreme Court on Aadhaar. RBI said the norms have been revised because the government had amended laws on prevention of money laundering through a gazette notification on June 2017. However, it`s not clear when the new guidelines would come into force. In March 2018, the Supreme Court struck down a March 31 deadline for mandatory linking of Aadhaar to avail of various services until its constituent bench came up with a verdict on the validity of the unique identification number. The removal of the deadline applied to bank accounts and telecom services in addition to other government schemes. The circular states that for the purpose of doing customer due diligence, all RBI regulated entities must obtain “from an individual who is eligible for enrolment of Aadhaar”, the Aadhaar number, PAN or Form No. 60 as defined in income tax rules. Since every citizen is eligible for Aadhaar, the rule will apply to all Indians.
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