RBI allows banks to use Aadhaar with customer’s consent for KYC purpose
MAS Team | 30 May 2019
Reserve Bank updated its list of documents required for identification of individuals, thereby including Aadhaar which can be used for verification with consumer consent.
RBI, responsible for regulating Know Your Customer (KYC) norms has allowed banks to conduct the authentication/offline verification of an individual using Aadhaar for identification. 
In February, the Union Cabinet had approved the ordinance allowing voluntary use of Aadhaar as identity proof for opening a bank account or obtaining a mobile connection. 
RBI stated that ‘Proof of possession of Aadhaar number’ has been added to the list of Officially Valid Documents (OVD). 
RBI has informed that for customer identification of individuals seeking benefits or subsidy under the direct benefit transfer (DBT), the banks should obtain the Aadhaar number and they may carry out e-KYC verification. On the other hand, for non-DBT consumers, the Regulated Entities (RE’s) are bind to obtain a certified copy of any OVD that contains details of consumer’s identity and address along with a recent photograph.
RE’s should be careful that the customers falling in non-DBT beneficiary category redact or blackout their Aadhaar numbers as per terms of sub-rule 16 of Rule 9 of the amended PML Rules.
For non-individual customers, the amendments made in the KYC norms further stated requirement of PAN (Permanent Account Number) /Form 60. PAN should be obtained in case of companies and partnership firms apart from other requisite documents of entity. The PAN/Form 60 of the authorised signatories shall also be obtained. 
Form 60 is mandatory for an individual who does not have a PAN.   
For existing account holders, PAN or Form 60 is to be submitted within the stipulated time as notified. Failure to submit the the same shall result into the account getting ceased till PAN or Form 60 is submitted. However, before taking such action, the RE’s shall issue a notice to the customer.