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PMLA Rules: Aadhaar-based Know Your Customer (KYC) norms made flexible

K.R.Srivats New Delhi | Updated on November 15, 2019 Published on November 14, 2019

Finmin allows individuals to use current address on a self declaration basis

 

You can now give a more functional address, say a place of work, while furnishing Aadhaar as proof of identity for know-your-customer (KYC) purposes with banks and other service providers. This can be done even if the address opted for does not match with the one specified in your Aadhaar card/records.

The Finance Ministry has now amended the PMLA rules, allowing this flexibility for people who use Aadhaar for KYC and want to give their current address, which is different from the address mentioned in Aadhaar records.

This will be allowed if the individual concerned provides a self-declaration for the current address, according to the latest amendment to the Prevention of Money Laundering (Maintenance of Records) Rules 2005.

There had been lot of demand from various sectors of the economy for this flexibility. It will particularly help migrant workers who have the address of their native place in Aadhaar but may want a bank account with their current address where they are living for work.

With this move, people who may have their residential address in their Aadhaar can now give work address as their current address, say economy watchers.

Navin Surya, Chairman, Fintech Convergence Council, told BusinessLine that the latest PMLA rule amendment would help migrant workers and other professionals who work from a city different from their permanent address. “This means no additional physical documents and processes are to be done by such consumers and organisations, and whole process can move to full digital even when current address is different than on Aadhaar.”, he said.

Now, it is expected that all regulators would modify their KYC circulars to incorporate this change so implementation of this could be on ground faster, he said.

“I also hope that Aadhaar access to Insurance, Payments and NBFC companies would be restored soon like recently done by SEBI for Mutual Funds”, Surya said.

Srivats.kr@thehindu.co.in

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Published on November 14, 2019
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