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RBI Makes Aadhaar Mandatory For KYC In Banking And Finance Companies

The Reserve Bank of India (RBI) on Friday amended its ‘know your customer’ (KYC) guidelines, making Aadhaar key to conducting customer due diligence by banks and finance companies. The RBI has also done away with sections relating to the use of other “officially valid documents” by lenders for address and identity proof but has said that the new norms are subject to the final judgment of the Supreme Court on Aadhaar.

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In a circular, the RBI said the norms have been revised because the government had amended laws on prevention of money laundering through a gazette notification in June 2017. However, it’s not clear when the new guidelines would come into force.

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