UID may be used to open bank accounts

NEW DELHI: Aadhaar could soon be the basis to open bank accounts with the government and the Nandan Nilekani headed Unique Identification Authority of India (UIDAI) set to push the cards for compliance with know-your-customer ( KYC) norms.

Though the Reserve Bank of India has permitted banks to use Aadhaar for opening no-frills accounts, where only cash deposits and withdrawals are permitted, it is yet to do the same for other banking transactions such as opening accounts, applying for credit cards or seeking loans.

The government seems to have woken up to the need to treat it on a par with your ration card and passport, given that it contains the cardholder’s photograph, other information as well as the address. “When this can be complying with the revenue department’s anti-money laundering norms, then why not for banking transactions?” an official asked. The issue was discussed during a meeting between bankers, government officials and UIDAI officials, including Nilekani on Tuesday.

While the process of issuing Aadhaar has just started with the number of cards taken up on a daily basis estimated at around 1.5 lakh, this number is expected to reach 10 lakh by October. Over the next three years, 60 crore Indians would have these cards.
The meeting also deliberated on making bank accounts the main route for transfer of funds under schemes such as NREGA as well as for direct transfer of subsidies.

IMPORTANT CARD

The govt seems to have woken up to the need to treat Aadhaar on a par with a ration card and passport, given that it contains the cardholder’s photograph, other information as well as the address Over the next three years, 60 crore Indians would have Aadhaar cards.