Financial services secretary clarifies unique ID can’t be used as an address proof for opening large accounts
D.K. Mittal said there is unlikely to be any change in this stand as the central bank has to adhere to global norms for preventing money laundering.
Photo: PIB
New Delhi: At a time when the government is preparing to use Aadhaar-enabled bank accounts for direct cash transfers of subsidies, the finance ministry has clarified that the unique identification number can only be used as an identity proof, and not as an address proof for opening large accounts.
Addressing the concerns of some northern states over problems faced by customers in opening bank accounts using Aadhaar, financial services secretary D.K. Mittal said that while only Aadhaar is sufficient for opening no frill accounts, it is not enough for opening a normal bank account.
There was confusion among banks over accepting Aadhaar as the sole ‘know your customer’ proof. The Reserve Bank of India, in a notification, had also insisted that banks satisfy themselves that the address given in Aadhaar is the correct address.
Mittal said that there is unlikely to be any change in this stand as the central bank has to adhere to global norms for preventing money laundering.
Delhi chief minister Sheila Dikshit, who was also present at the meeting attended by finance minister P. Chidambaram, finance ministry officials and chief ministers of some other northern states, said the government had received complaints about difficulties in opening bank accounts using Aadhaar.
The opening of Aadhaar-linked bank accounts is the key to moving towards a regime of direct transfer of cash subsidies for the various subsidy schemes of the government. The government has announced that from 1 January direct cash transfer of subsidies to beneficiaries will start in 51 districts.