Linking bank accounts with Aadhaar mandatory: RBI

NEW DELHI: At a time when customers are rushing to link all their bank accounts with Aadhaar, the Reserve Bank of India (RBI) has clarified that it never issued any such directions, it was the decision of the Indian government.

The apex bank further 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.

In a response to a Right to Information (RTI) Act application filed by Moneylife India and carried by it on 18 October, the RBI said:

“The Government has issued a Gazette Notification GSR 538(E) dated 1 June 2017 regarding Prevention of Money laundering (Maintenance of Records) Second Amendment Rules, 2017, inter-alia, making furnishing of Aadhaar (for those individuals who are eligible to be enrolled for Aadhaar) and permanent number (PAN) mandatory for opening a bank account. It may be noted that Reserve Bank has not yet issued instruction in this regard”.

Clarifying its position, RBI in a statement on Saturday said: “...in applicable cases, linkage of Aadhaar number to bank account is mandatory under the Prevention of Moneylaundering (Maintenance of Records) Second Amendment Rules, 2017 published in the Official Gazette on 1 June 2017. These Rules have statutory force and, as such, banks have to implement them without awaiting further instructions.”