RBI permits Aadhaar for Direct Benefit Transfer

BE/RBINOTE/30/2019

The apex body Reserve Bank of India, has now permitted banks to accept Aadhaar number as part of a customer’s original document for the purpose of compliance of KYC (Know Your Customer) guidelines.

  • While amending the KYC norms for regulated entities released on Tuesday, the RBI has permitted Aadhar authentication or offline verification for individuals who voluntarily opt for the same
  • Also, the Offline KYC as a new means of user verification with customer’s consent is permitted.
  • This comes in the wake of an ordinance passed by the Central Government on February 28, this year, specifying the details on the usage of Aadhaar as an Identification document.
  • Also, the regulator has said that for the customers who do not intend to avail of Direct Benefit Transfer or subsidies from the Government, the bank should not store their Aadhaar numbers which they already have.
  • More so, RBI allows business correspondents, business facilitators and bank officials to conduct KYC for customers.
  • RBI has thus permitted opening accounts to be opened through e-KYC as of now, and the accounts opened through the use of one-time password or OTP based authentication done through Aadhaar remotely, face to face verification is required to be completed within one-year period. The balance in such accounts will be limited to Rs. 1 lac.
  • It is said that a master direction is normally an aggregate of all small changes which have happened through the year and this instruction from RBI condenses all fresh guidelines on KYC done for customers through Aadhaar.

Note:

  • The Central Bank had earlier barred the use of electronic KYC for non-benefit taking customers.
  • Recently, Finance Ministry had brought out procedures for access to Aadhaar for non-banking regulated bodies like Mobile Wallets and Stock Brokers which are yet to be incorporated by them.

Author: Admin Bankedge

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