MANU/RMIC/0056/2019
Ministry : Reserve Bank of India
Department/Board : Department of Banking Regulation
Circular No. : DBR.AML.BC.No.39/14.01.001/2018-2019
RBI/2018-2019/190
Date : 29.05.2019
The Chairpersons/CEOs of all the Regulated Entities
Dear Sir/Madam,
Amendment to Master Direction (MD) on KYC
Government of India, vide Gazette Notification G.S.R. 108(E) dated February 13, 2019, has notified amendments to the Prevention of Money-laundering (Maintenance of Records) Rules, 2005. Further, an Ordinance, "Aadhaar and other Laws (amendment) Ordinance, 2019", has been notified by the Government amending, inter alia, the Prevention of Money Laundering Act, 2002.
2. Important changes carried out in the Master Direction in accordance with the aforementioned amendments are listed hereunder:
a) Banks have been allowed to carry out Aadhaar authentication/ offline-verification of an individual who voluntarily uses his Aadhaar number for identification purpose. (Section 16 of the amended MD on KYC)
b) 'Proof of possession of Aadhaar number' has been added to the list of Officially Valid Documents (OVD) with a proviso that where the customer submits 'Proof of possession of Aadhaar number' as OVD, he may submit it in such form as are issued by the Unique Identification Authority of India (UIDAI). (Section 3 of the amended MD)
c) For customer identification of "individuals":
i. For individual desirous of receiving any benefit or subsidy under any scheme notified under section 7 of the Aadhaar (Targeted Delivery of Financial and Other subsidies, Benefits and Services) Act, 2016, the bank shall obtain the customers Aadhaar and may carry out its e-KYC authentication based on his declaration that he is desirous of receiving benefit/subsidy under the Aadhaar Act, 2016. (Section