1. Linking Aadhaar number to bank accounts is mandatory, clarifies RBI; read full statement

Linking Aadhaar number to bank accounts is mandatory, clarifies RBI; read full statement

Aadhaar bank account linking: Now, after some news reports went viral claiming that 'Aadhaar number linkage with bank accounts is not mandatory', the Reserve Bank of India has released an official statement,

By: | Updated: October 21, 2017 6:59 PM
aadhaar number, bank account number, reserve bank of india, RBI, Prevention of Money-laundering, Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017, aadhaar bank link, aadhaar bank account link, how to link aadhaar with bank account A number of people are still confused about whether the linking of Aadhaar number with bank account is mandatory or not. (Photo from RBI Twitter and PTI)

A number of people are still confused whether the linking of Aadhaar number with bank account is mandatory or not. Now, after some news reports went viral claiming that ‘Aadhaar number linkage with bank accounts is not mandatory’, the Reserve Bank of India has released an official statement on the Aadhaar number-bank a/c linking matter. The RBI has clearly said that linking Aadhaar to bank accounts is mandatory. Yes, it is mandatory! Issuing a clarification RBI said, “Some news items have appeared in a section of the media quoting a reply to a Right to Information Act application that Aadhaar number linkage with bank accounts is not mandatory.” “The Reserve Bank clarifies 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 RBI said in the statement.

“These Rules have statutory force and, as such, banks have to implement them without awaiting further instructions,” the RBI added in the statement.

The big development came after some reports in media claimed that ‘Aadhaar number linkage with bank accounts is not mandatory’.

Earlier, the existing bank account holders have been asked to furnish the Aadhaar number issued by the Unique Identification Authority of India (UIDAI) by December 31, 2017, failing which the account will cease to be operational, according to a revenue department notification. Also, the government had made quoting of biometric identity number Aadhaar mandatory for opening of bank accounts as well as for any financial transaction of Rs 50,000 and above. Also

The government in Budget 2017 had already mandated seeding of Aadhaar number with Permanent Account Number to avoid individuals using multiple PANs to evade taxes.

The notification issued amending the Prevention of Money- laundering (Maintenance of Records) Rules, 2005, mandated quoting of Aadhaar along with PAN or Form 60 by individuals, companies and partnership firms for all financial transactions of Rs 50,000 or above.

Tightening the rules for small accounts, which can be opened without having officially valid KYC documents, the amendment said such accounts – which can have maximum deposit of Rs 50,000, can be opened only at bank branches which have core banking solution.

FULL TEXT of the statement released by RBI:-

“RBI clarifies that linking Aadhaar to bank accounts is mandatory

Some news items have appeared in a section of the media quoting a reply to a Right to Information Act application that Aadhaar number linkage with bank accounts is not mandatory.

The Reserve Bank clarifies 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.

These Rules have statutory force and, as such, banks have to implement them without awaiting further instructions.

Jose J. Kattoor
Chief General Manager

Press Release: 2017-2018/1089″

  1. R
    Reader
    Nov 7, 2017 at 7:49 am
    The biometrics-based Aadhaar program is inherently flawed. Biometrics can be easily lifted by external means, there is no need to hack the system. High-resolution cameras can capture your fingerprints and iris information from a distance. Every eye hospital will have iris images of its patients. So another person can CLONE your fingerprints and iris images without your knowledge, and the same can be used for authentication. That is why advanced countries like the US, UK, etc. did not implement such a self-destructive biometrics-based system. If the biometric details of a person are COMPROMISED ONCE, then even a new Aadhaar card will not help the person concerned. This is NOT like blocking an ATM card and taking a new one.
    Reply
    1. V
      V K Agarwal
      Oct 21, 2017 at 8:03 pm
      Bank linking Aadhaar It is strange that Regulator says Aadhaar linking is compulsory banks are working in different direction. Some banks are delinking already linked a/cs and some are raising objection on aadhaar card itself and denying its registration. KYC instructions issued have no relevance now but not withdrawn creating confusion to bank staff implementing instructions.PAN have no independent authority and are linked with Aadhaar so it should be only document as KYC. For temporary period, other documents can have relevance for a limited period for new a/cs. Banks should not have any authority to decide whether to register an Aadhaar or not. If still find any reason contardictory, should contact AAdhaar authority act on its decision and not at its own. RBI should review KYC circular issue revised relevant to present circumstances and not create confusion for bank officials and ultimately affecting customers by unending KYC compliance issue and affect bank customer relations
      Reply
      1. S
        Sagar
        Oct 21, 2017 at 7:29 pm
        What are the applicable cases? PMLA act seems to say that linking is necessary only for newly opened bank accounts. It almost seems like that there is no government in India - with all the confusing directives issued by government bodies deliberately confusing and threatening citizens of India in to submission to get and link Aadhaar card. Media articles also do not try to get clarity to their readers.
        Reply
        1. R
          Reader
          Oct 21, 2017 at 6:20 pm
          The Supreme Court is yet to take a decision on the validity of Aadhaar and whether the State can compulsorily link Aadhaar to various programs and all financial transactions. The Supreme Court is set to hear peti-tions related to Aadhaar including those for scrapping the Aadhaar Act, stopping biometric profiling, and seeding bank and mobile databases, in the first week of November 2017.
          Reply
          1. R
            Reader
            Oct 21, 2017 at 5:11 pm
            A centralized and inter-linked biometric database like Aadhaar will lead to profiling and self-censorship, endangering freedom. Personal data gathered under the Aadhaar program is prone to misuse and surveillance. Aadhaar project has created a vulnerability to identi-ty fraud, even identi-ty theft. Easy harvesting of biometrics traits and publicly-available Aadhaar numbers increase the risk of impersonation, especially online and banking fraud. Centralized databases can be hacked. Biometrics can be cloned, copied and reused. Thus, BIOMETRICS CAN BE FAKED. High-resolution cameras can capture your fingerprints and iris information from a distance. Every eye hospital will have iris images of its patients. So another person can clone your fingerprints and iris images without your knowledge, and the same can be used for authentication. If the Aadhaar scheme is NOT STOPPED by the Supreme Court, the biometric features of Indians will soon be cloned, misused, and even traded.
            Reply
            1. R
              Reader
              Oct 21, 2017 at 5:10 pm
              UK’s Biometric ID Database was dismantled. Why the United Kingdom's biometrics-linked National Identi-ty Card project to create a centralized register of sensitive information about residents similar to Aadhaar was scrapped in 2010?? The reasons were the massive threat posed to the privacy of people, the possibility of a surveillance state, the dangers of maintaining such a huge centralized repository of personal information, and the purposes it could be used for, and the dangers of such a centralized database being hacked. The other reasons were the unreliability of such a large-scale biometric verification processes, and the ethics of using biometric identification. ( Identi-ty Cards Act 2006 and Identi-ty Documents Act 2010 )
              Reply
              1. R
                Reader
                Nov 7, 2017 at 7:51 am
                The Aadhaar program was designed in 2009 by mainly considering the 'Identi-ty Cards Act 2006' of UK, but the UK stopped that project in 2010, whereas India continued with the biometrics-based program. We must think why the United Kingdom abandoned their project and destroyed the data collected. (Google: 'Identi-ty Cards Act 2006' and 'Identi-ty Documents Act 2010' )
                Reply
              2. R
                Reader
                Oct 21, 2017 at 5:10 pm
                The US Social Security Number (SSN) card has NO BIOMETRIC DETAILS, no photograph, no physical description and no birth date. All it does is confirm that a particular number has been issued to a particular name. Instead, a driving license or state ID card is used as an identification for adults. The US government DOES NOT collect the biometric details of its own citizens for the purpose of issuing Social Security Number. The US collects the fingerprints of only those citizens who are involved in any criminal activity (it has nothing to do with SSN), and the citizens of other countries who come to the US.
                Reply
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