Indian Government Approves UIDAI (Aadhar) To be Used For KYC Norms

KYC (i.e. Know Your Customer) has been a serious concern for organizations like banks, telecom operators owing to lack of standardization of data across the system. But now that UID (Aadhar Project) is expanding to different parts of country and is collecting Citizen’s data, Government has announced that UID (Aadhar) letter will be used as a complete KYC document for opening of bank accounts.

Government of India Notification No. 14/2010/F.No. 6/2/2007-ES dated December 16, 2010 which recognises the letter issued by Unique Identification Authority of India (UIDAI) containing details of name, address and Aadhaar number, as an officially valid document as contained in Rule 2(1)(d) of the PML Rules, 2005.

In this regard, a reference is invited to paragraph 5 of our circular DBOD.AML.No.BC.77/14.01.001/2010-11 dated January 27, 2011, wherein it was stipulated that when bank relies exclusively on the Aadhaar letter as complete KYC document for opening of an account, such an account would be subject to all conditions and limitations applicable to ‘Small’ accounts as detailed in the Govt notification referred to above. After further consultations with Government, it has now been decided to accept the letter issued by the UIDAI as described above as an officially valid document for opening bank accounts without the limitations applicable to ‘Small’ accounts..[source]

So finally, the first mainstream implementation of UIDAI is on its way.

Sign Up for nextbigwhat newsletter

The smartest newsletter, partly written by AI.

Download, the short news app for busy professionals