Aadhaar number linking to Bank Account mandatory, clarifies RBI

By KalingaTV Bureau Last updated Oct 21, 2017

RBI Slaps Rs 1 Crore Fine On HDFC Bank For Violation Of KYC Norms — Picture source: Indian Express

KalingaTV News Network

Mumbai: The Reserve Bank of India on Saturday in a statement mentioned that linking the Aadhaar number with bank accounts is mandatory.

This clarification followed after certain media reports quoted a reply to an RTI query that RBI has not issued any instruction on linking the 12-digit biometric number with bank accounts by December 31.

Earlier in June, the central government had made Aadhaar mandatory for opening bank accounts as well as for any transaction of Rs 50,000 and above.

The Reserve Bank clarified that, in applicable cases, linkage of Aadhaar number to bank account is mandatory under the Prevention of Money-Laundering (Maintenance of Records) Second Amendment Rules, 2017 published in the Official Gazette on June 1, 2017.

The rules have statutory force and as such, banks have to implement them without awaiting further instructions, RBI stated.

The existing bank account holders have to link their Aadhaar numbers issued by UIDAI by Dec 31, 2017, failing which the account will cease to be operational.