For a long time, the authenticity and validity of Aadhaar as an Officially Valid Document (OVD) has been under question. The Supreme Court pronounced its judgment concerning the constitutional validity of Aadhaar on 26th Sept, 2018, where it has mentioned that; Aadhaar is not a mandatory document to open a bank account.
UIDAI has also updated their website and has clearly mentioned that Aadhaar is a preferred KYC document. But you don’t have to submit it mandatorily and can submit any other document as prescribed by the RBI in their list of Officially Valid Documents.
Let us further look at all the details
- In compliance with the Prevention of Money-Laundering (Maintenance of Records) Third Amendment Rule, 2019, it is mandatory for those accounts to produce Aadhaar to the banks that receive subsidy or benefit from the government through DBT (Direct Benefit Transfer) or other welfare scheme.
- If you are looking for other banking services, you may wish not to submit Aadhaar and share other officially valid documents with the bank. Note: In this case, it is not mandatory to link your Aadhaar with your bank account.
Also Read: A Guide On How To Update Aadhaar Card Details
Why Aadhaar is not a mandatory identity proof?
A case concerning the constitutional validity of Aadhaar is presented before the Supreme Court. It then passed its verdict in 2018, making it clear that Aadhaar is non-mandatory for opening a bank account or to get a new SIM card, etc.
The Supreme Court statement on Aadhaar
Aadhaar is mandatory for –
- It is mandatory to link Aadhaar with PAN and ITR
- Aadhaar is mandatory for Aadhaar based DBT / subsidy credits
Also Read: How To Retrieve A Lost Aadhaar Card Online
Documents required to complete KYC
The RBI has asked to present the below mentioned documents for banking requirements:
a) Recent Photograph
b) PAN or Form 60 as per income tax rules 1962
c) (i) Officially Valid documents (OVD): Passport, driving license, voters’ ID card, PAN card, Aadhaar letter issued by UIDAI and Job Card issued by NREGA and signed by a State Government official for proof of identity and address
Or
(ii) E-KYC authentication with the consent of the customer where the customer wishes to receive any subsidy/benefit from any scheme mentioned under the Section 7 of Aadhaar Act, 2016.
Typically, an account opening form available at any bank branch will highlight the required information and documents. Further, if you are looking to open a bank account online, the bank’s website or their mobile banking app will guide you through the account opening process.
Providing Aadhaar is voluntary.
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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
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