RBI/2011-12/207
DBOD.AML.BC.No. 36/ 14.01.001/2011-12
September 28, 2011
The Chairmen/CEOs of all Scheduled Commercial
Banks (Excluding RRBs)/Local Area Banks/All India Financial Institutions
Dear Sir,
Know Your Customer Norms – Letter issued by
Unique Identification Authority of India (UIDAI) containing details of name,
address and Aadhaar number
Please refer to the 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 as prescribed in
paragraph 5 of our circular under reference.
- In this connection, attention is also invited to paragraph 2.4 (f) of the
Master Circular on KYC/AML/CFT dated July 01, 2011, dealing with customer
identification. It is reiterated that while opening accounts based on Aadhaar
also, banks must satisfy themselves about the current address of the customer by
obtaining required proof of the same as per extant instructions.
- Please acknowledge receipt.
Yours faithfully,
(Deepak Singhal)
Chief General Manager in-Charge
Government of India
Ministry of Finance
(Department of Revenue)
Notification
New Delhi, the 16th December, 2010
GSR (E) – In exercise of the powers conferred by sub-section (1) read with
clauses (h) (i), (j) and (k) of sub-section (2) of Section 73 of the Prevention
of Money-laundering Act, 2002 (15 of 2003), the Central Government hereby makes
the following amendments to the Prevention of Money-laundering (Maintenance of
Records of the Nature and Value of Transactions, the Procedure and Manner of
Maintaining and Time for Furnishing Information and Verification and Maintenance
of Records of the Identity of the Clients of the Banking Companies, Financial
Institutions and Intermediaries) Rules, 2005, namely::-
1. (1) These rules may be called the Prevention of Money-laundering (Maintenance
of Records of the Nature and Value of Transactions, the Procedure and Manner of
Maintaining and Time for Furnishing Information and Verification and Maintenance
of Records of the Identity of the Clients of the Banking Companies, Financial
Institutions and Intermediaries) Third Amendment Rules, 2010.
(2) They shall come into force on the date of their publication in the Official
Gazette.
2. In the Prevention of Money-laundering (Maintenance of Records of the Nature
and Value of Transactions, the Procedure and Manner of Maintaining and Time for
Furnishing Information and Verification and Maintenance of Records of the
Identity of the Clients of the Banking Companies, Financial Institutions and
Intermediaries) Rules, 2005, -
(a) in rule 2,-
(i) after clause (b), the following clause shall be inserted, namely:-
“(bb) “Designated Officer” means any officer or a class of officers authorized
by a banking company, either by name or by designation, for the purpose of
opening small accounts”.
(ii) in clause (d), for the words “the Election Commission of India or any other
document as may be required by the banking company or financial institution or
intermediary”, the words “Election Commission of India, job card issued by NREGA
duly signed by an officer of the State Government, the letter issued by the
Unique Identification Authority of India containing details of name, address and
Aadhaar number or any other document as notified by the Central Government in
consultation with the Reserve Bank of India or any other document as may be
required by the banking companies, or financial institution or intermediary”
shall be substituted;
(iii) after clause (fa), the following clause shall be inserted, namely:-
“(fb) “small account” means a savings account in a banking company where-
(i) the aggregate of all credits in a financial year does not exceed rupees one
lakh,
(ii) the aggregate of all withdrawals and transfers in a month does not exceed
rupees ten thousand, and;
(iii) the balance at any point of time does not exceed rupees fifty thousand”.
(b) In rule 9, after sub-rule (2), the following sub-rule shall be inserted,
namely:-
“(2A) Notwithstanding anything contained in sub-rule (2), an individual who
desires to open a small account in a banking company may be allowed to open such
an account on production of a self-attested photograph and affixation of
signature or thumb print, as the case may be, on the form for opening the
account.
Provided that –
- the designated officer of the banking company, while opening the small
account, certifies under his signature that the person opening the account has
affixed his signature or thumb print, as the case may be, in his presence;
- a small account shall be opened only at Core Banking Solution linked
banking company branches or in a branch where it is possible to manually monitor
and ensure that foreign remittances are not credited to a small account and that
the stipulated limits on monthly and annual aggregate of transactions and
balance in such accounts are not breached, before a transaction is allowed to
take place;
- a small account shall remain operational initially for a period of twelve
months, and thereafter for a further period of twelve months if the holder of
such an account provides evidence before the banking company of having applied
for any of the officially valid documents within twelve months of the opening of
the said account, with the entire relaxation provisions to be reviewed in
respect of the said account after twenty four months.
- a small account shall be monitored and when there is suspicion of money
laundering or financing of terrorism or other high risk scenarios, the identity
of client shall be established through the production of officially valid
documents, as referred to in sub rule (2) of rule 9';; and
- foreign remittance shall not be allowed to be credited into a small account
unless the identity of the client is fully established through the production of
officially valid documents, as referred to in sub-rule (2) of rule 9.”
(Notification No.14/2010/F.No.6/2/2007-ES)
(S.R. Meena)
Under Secretary