RBI New KYC Norms Aadhaar Mandatory to open bank account
RBI New KYC Norms Aadhaar Mandatory to open bank account

The Reserve Bank of India (RBI) has made Aadhaar Mandatory to open a bank account under new Know Your Customer (KYC) Norms. However, it will be subject to final decision of the Supreme Court on making Aadhaar mandatory as per latest circular by RBI.

Earlier, an Officially Valid Document (OVD) for address proof along with Permanent Account Number (PAN) issued by Income Tax Department and recent passport size photograph were the key KYC documents to open a bank account.

Amended Customer Due Diligence(CDD) Procedure

In amended CDD Procedure, Aadhaar number, Permanent Account Number (PAN) or Form 60 (Income Tax Rules,1962) need to be obtained as key KYC documents from an individual, who is eligible for enrolment of Aadhaar.

Provided, where an Aadhaar number has not been assigned to an individual, proof of application of enrolment for Aadhaar shall be obtained wherein the enrolment is not older than 6 months and in case PAN is not submitted, certified copy of an OVD containing details of identity and address and one recent photograph shall be obtained.

Individual, who is a resident in the State of Jammu and Kashmir or Assam or Meghalaya, and who does not submit Aadhaar or proof of application of enrolment for Aadhaar, the following shall be obtained:

  • Certified copy of an OVD containing details of identity and address
  • one recent photograph

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 as defined in Income-tax Rules, 1962, as amended from time to time.
  • one recent photograph and
  • A certified copy of an OVD containing details of identity and address.

In case the OVD furnished by the customer does not contain updated address, following documents shall be deemed to be OVDs for the limited purpose of proof of address:

  • Utility bill which is 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, if they contain the address.
  • Letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and license agreements with such employers allotting official accommodation;

OVD means the passport, the driving license, Voter’s Identity Card issued by the Election Commission of India, job card issued by NREGA duly signed by an officer of the State Government, letter issued by the National Population Register containing details of name and address.

“KYC norms have been updated following the government’s decision to update the ‘Prevention of Money Laundering’ (PML) rules in June 2017”, said RBI.

The government had last month 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, the government had said.

“The revised Master Direction is in accordance with the changes carried out in the PML Rules vide Gazette Notification GSR 538 (E) dated June 1, 2017 and thereafter and is subject to the final judgment of the Hon’ble Supreme Court,” RBI said while updating its master direction on know your customer norms.


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