The mandatory requirement of furnishing Aadhaar for opening Bank Account has been removed after the Verdict came out of The Supreme Court of India. Additionally The Supreme Court of India has also mentioned in its Verdict that customers cannot be forced to link their bank accounts with Aadhaar, and also the bank cannot cease account if the account holder does not have Aadhaar.
However in past few years, each and every banks in India had come up with concept of opening bank account online using Aadhaar and Aadhaar OTP based eKYC.
So now after the Supreme Court Verdict, what adverse impact will it create to all accounts which are opened through Aadhaar or Aadhaar OTP based eKYC? Will Bank Accounts get deactivated which are opened through Aadhaar or Aadhaar OTP based eKYC?
What will happen to Bank Accounts which are opened through Aadhaar or Aadhaar OTP based eKYC
Applying for Aadhaar is voluntary decision of the resident, but Aadhaar continues to be still a valid Proof of Identity, Proof of Address and KYC Document. And if the Bank Account holder voluntarily prefers to submit his or her Aadhaar details, then his or her bank account will still stay active and will be able to enjoy uninterrupted banking services.
But in case if the account holder wishes to delink his or her Aadhaar details, where the only KYC document used was Aadhaar then he or she will have to undergo Re-KYC of their Bank Account by submitting other documents which are accepted by banks. And if the customer has opened bank account by using other official valid documents, then you can delink your Aadhaar and account will still stay active.
However Aadhaar continues to be in the list of six official valid documents (OVD) for completing KYC. Customers are free to provide any one of the document from the list of six official valid documents for opening bank account.
After the Verdict of the Supreme Court of India, most of the banks in India has mentioned on their portal that providing Aadhaar for OTP based KYC is now optional.
Some of the Banks which used to allow customers to open Aadhaar OTP Based eKYC Account Online are Kotak 811, RBL’s Abacus, DigiAccount – Fino, SC Digital Account, Federal Bank Selfie Account, INSTAbanking – Catholic Syrian Bank, SBI YONO, Aditya Birla Payments Bank, Paytm Payments Bank Savings Account, UCO Bank, etc.