What changed
RBI has clarified that the letter issued by UIDAI containing name, address, and Aadhaar number is recognized as an officially valid document under the Prevention of Money Laundering (PML) Rules, 2005. This follows a Government of India notification from December 2010. Banks are reminded that even when using Aadhaar for account opening, they must obtain separate proof of the customer's current address as per existing KYC instructions.
What it means for you
Urban Co-operative Banks can now use the UIDAI letter as a valid KYC document, simplifying customer onboarding. However, the requirement to verify the current address separately remains unchanged, so banks cannot rely solely on the Aadhaar letter for address proof. This ensures compliance with both KYC norms and anti-money laundering standards.
What you must do
- Accept the UIDAI letter containing name, address, and Aadhaar number as an officially valid document for customer identification.
- Ensure that for accounts opened using Aadhaar, you still obtain and verify a separate proof of the customer's current address as per existing instructions.
- Acknowledge receipt of this circular to your Regional Office of the Urban Banks Department.
- Update your internal KYC/AML policies to reflect this recognition of the UIDAI letter.
Who it affects
All Primary (Urban) Co-operative Banks, Compliance and KYC teams at UCBs, Branch staff handling account opening
Can we use the Aadhaar letter as the only document for identity and address proof?
No. The UIDAI letter is valid for identity, but you must still obtain separate proof of the customer's current address as per existing KYC instructions.
Does this circular apply to all types of accounts?
Yes, it applies to all account openings where Aadhaar is used, but the address verification requirement remains mandatory.
What if the UIDAI letter does not have the current address?
You must obtain a separate officially valid document that proves the current address, as per the master circular on KYC norms.