The Reserve Bank of India (RBI) has modified its master direction on Know- Your-Customers(KYC) for regulated entities (REs). Amongst the important changes is allowing banks to carry out Adhaar authentication or offline verification of individuals who voluntarily use his Aadhaar number for identification purpose, and adding ‘proof of possession of Aadhaar number’ to the list of Officially Valid Documents (OVD).
In addition to this, regulated entities other than banks can verify a customer through offline mode under the Aadhaar Act with his/her consent.
“For existing bank account holders, PAN or Form No 60 is to be submitted within such timelines as may be notified by the government, failing which the account shall be subject to temporary ceasing till PAN or Form No 60 is submitted.” declared the central bank.
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“However, before temporarily ceasing operations for an account, the RE shall give the customer an accessible notice and a reasonable opportunity to be heard,” the RBI said.
For the purpose of customer identification of individuals, who are not beneficiary of Direct Benefit Transfer, the REs should ask for a certified copy of any OVD that gives away details of his identity and address along with one recent photograph.