Banks need to periodically update customer identification documents in their records of account holders to adhere to the KYC norms issued by the Reserve Bank of India (RBI). This can be triggered by a drastic change in the customer's profile or nature of transactions in the account and depends upon the risk profile of the account holder.
Q1) What is KYC??
Know Your Customer - KYC enables banks to know/ understand their customers and their financial dealings to be able to serve them better and manage its risks prudently.
Q2) Why KYC is mandatory??
Three important reasons for KYC
-verify the legal status of the legal person/ entity. -verify identity of the authorized signatories. -verify identity of the Beneficial owners/ controllers of the account.
Aadhar link of Bank is mandatory because It is a regulatory and legal requirement. Regulatory: In terms of the guidelines issued by the Reserve Bank of India (RBI) on 29th November 2004 on Know Your Customer [KYC] Standards – Anti Money Laundering [AML] Measures, all banks are required to put in place a comprehensive policy framework covering KYC Standards and AML Measures.
How to do it??
To do Aadhar link of your Bank Account just follow the steps given below
- KYC declaration form
Go to your respective Bank and ask them KYC declaration form and you required to fill a KYC form. Personal information and contact details need to be provided in the form. The form has to be signed by the account holder.
- Document required
The customer needs to submit self attested copies of acceptable residential address proof and identity proof. Submission of documents and KYC form can be done physically by visiting the bank branch or by scanning the documents and uploading the same on the Net banking portal.
- Days to process
Once the documents have been submitted physically or online, the bank usually takes about 10 working days to process the request if the documents are found to be in order.
- Points to be noted
1. In case of joint account holders, the re-KYC declaration form is required to be submitted for each individual account holder
2. If Aadhaar number has not been updated already in the bank records, a self attested copy of the Aadhaar card also needs to be provided
By following this simple steps you can do Aadhar link of your Bank Account.
Last Date to Link Aadhar to your Bank Account.
According to a press release from the finance ministry on December 13, 2017, the date to do so has been extended to March 31, 2018 from December 31, 2017.
How to check my Bank Account is Link with Aadhar or not
However, even if you have submitted your Aadhaar details at your branch there is still a possibility that the linkage between the two was not done correctly by the bank or it may be that the bank has not linked Aadhaar with your account because they have misplaced your details. So, in this case Government has given a way to find your Bank Account is Link or not.
Here is a step-by-step guide to know your Bank account is Link or not.
1. Visit the aadhaar website:- www.uidai.gov.in
2. Click on " Check Aadhaar & Bank account link status"
3. Then enter your 12 digits aadhaar number and security code, then you will receive OTP on you register mobile number in your aadhaar card.
4. After entering the OTP you got and Click on login.
5. On successfully login, it will show you whether the Aadhaar is successfully link to your Bank or not.
By following this simple step you can do aadhaar link in bank and also you can Check whether your aadhaar link of your Bank is successful or no. For more information Stay Tuned on Being Versatile.
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By r@xx......
10 January 2018