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Aadhaar is still mandatory for new bank accounts

Livemint logo Livemint 01-05-2018 Shaikh Zoaib Saleem

If you want to open a new savings bank account, you need to produce your Aadhaar as well as PAN (permanent account number) or Form 60, according to the updated know-your-customer (KYC) guidelines issued by the Reserve Bank of India (RBI) on 20 April.

The new norms are, however, subject to the final Supreme Court judgment on Aadhaar, the RBI said in its circular. “The government had under Prevention of Money Laundering (PML) rules mandated linking of existing bank accounts with Aadhaar, but Supreme Court had extended the deadline. The RBI has now clearly set out that a new bank account can’t be opened without Aadhaar,” said Shilpa Mankar Ahluwalia, partner, Shardul Amarchand Mangaldas & Co., a legal firm.

Individuals eligible for enrolling in Aadhaar have to submit the number, or proof of application for Aadhaar enrolment, which should not be older than six months. 

Other officially valid documents such as passport, driving licence and voter’s identity card, can be used when you are submitting the proof of application for Aadhaar enrolment or Form 60 instead of PAN.

If a person is not eligible for Aadhaar, or is a non-resident, submitting PAN or Form 60 along with a certified copy of an officially valid document is sufficient. Aadhaar is not mandatory for residents of Jammu and Kashmir, Assam and Meghalaya too.

“We were already asking for Aadhaar for new accounts. We’ve been emphasising on it when PML rules were amended last year,” said the compliance head of a private bank, who didn’t want to be named. 

“There is still some confusion as the circular states that it will come into force as soon as it is published on the website, while also saying that it is subject to the final judgment of the Supreme Court. We are seeking clarifications from RBI,” the bank official said. 

Aadhaar is still mandatory for new bank accounts: Individuals eligible for enrolling in Aadhaar have to submit the number, or proof of application for Aadhaar enrolment, which should not be older than six months. Photo: Hemant Mishra/Mint © LiveMint Individuals eligible for enrolling in Aadhaar have to submit the number, or proof of application for Aadhaar enrolment, which should not be older than six months. Photo: Hemant Mishra/Mint

For existing account holders, submitting Aadhaar is not mandatory until the Supreme Court gives its final judgment.

For insurance plans

The Insurance Regulatory and Development Authority (Irdai), through a circular dated 20 March, clarified that Aadhaar is not compulsorily required at the time of buying a policy, and that the consumer is allowed 6 months from the date of commencement of account-based relationship to submit her Aadhaar number and PAN or Form 60. For existing policies, the date of linking Aadhaar has been extended until Supreme Court’s final judgment.

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