The Reserve Bank of India has revised “Know Your Customer” or the KYC guidelines. The KYC norms have been revised following the government’s decision to update the ‘Prevention of Money Laundering’ rules in June 2017. The RBI made linking of national biometric ID Aadhaar to bank accounts mandatory.
However, it said this will be subject to the final decision of the Supreme Court on making of Aadhaar mandatory.
Till now, an Officially Valid Document for address proof together with Permanent Account Number issued by the Income Tax department and a recent passport size photograph were the key KYC documents.
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.
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.