Banks can use Aadhar for KYC with customer's consent: RBI
RBI specifies that KYC norms should be followed by the banks and other entities regulated by it for various customer services, which include the opening of the accounts.
In February, the Union Cabinet had made an open declaration of an ordinance to allow the use of aadhar as an identity proof for opening an account or procuring mobile connection.
RBI also said that ‘Proof of possession of Aadhar card’ has been added to the list of Officially Valid Documents (OVD).
People desirous of receiving any benefits or subsidy under direct benefit transfer (DBT), banks should obtain the customer’s aadhar.
Regulated entities (REs) should ensure that customers while submitting their aadhar for customer due diligence, redact or blackout their Aadhaar number in terms of sub-rule 16 of Rule 9 of the amended PML Rules.
The amended KYC also states that for non-individual customers PAN/Form No 60 of the entity should be obtained apart from other entity related documents. The PAN/Form, No 60 of the authorized signatories, shall also be purchased.
According to RBI, those who fail to submit their PAN/Form no.60 within stipulated timeline will face the consequences in the way that their accounts will be ceased temporarily. However, before terminating of these accounts, REs should give the customer an accessible notice and reasonable opportunity to be heard.