What changed
The Government of India, via Notification No. 14/2010 dated December 16, 2010, amended PML Rules, 2005 to include the UIDAI letter as an officially valid document under Rule 2(1)(d). RBI directed NBFCs to accept this letter for account opening, aligning with the Master Circular on KYC/AML.
What it means for you
NBFCs can now use the Aadhaar letter as a primary KYC document, simplifying customer onboarding. However, they must still obtain separate proof of the customer's current address. This adds the Aadhaar letter to the list of OVDs, which already includes voter ID and NREGA job cards.
What you must do
- Update internal KYC policies to accept the UIDAI letter as an officially valid document for account opening.
- Ensure that for Aadhaar-based accounts, you still collect and verify proof of the customer's current address as per existing instructions.
- Confirm compliance with these instructions to your respective Regional Office of DNBS.
- Train staff on the new document acceptance and address verification requirements.
Who it affects
All Non-Banking Financial Companies (NBFCs), Residuary Non-Banking Companies (RNBCs)
Can we open an account solely based on the Aadhaar letter?
Yes, the UIDAI letter is now an officially valid document for identity. But you must also obtain separate proof of the customer's current address as per existing KYC norms.
Does this notification change address verification requirements?
No. The notification reiterates that NBFCs must satisfy themselves about the current address of the customer by obtaining required proof, even when using Aadhaar.