Ensure opening of Aadhaar-enabled accounts: RBI asks RRBs

Also asks to open accounts for residents of villages with less than 2,000 population for promoting financial inclusion

PTI | June 22, 2012



The Reserve Bank on Wednesday directed Regional Rural Banks (RRBs) to ensure opening of Aadhaar- enabled banks accounts for beneficiaries of the Mahatma Gandhi National Rural Employment Guarantee Scheme and other social security schemes, for facilitating electronic transfers.

"In view of the timelines attached to implementation of Electronic Benefit transfer (EBT) for routing MGNREGA wages and social security benefits including proposed cash transfers in respect of subsidies on kerosene, LPG and fertilisers, you are requested to ensure opening of Aadhaar Enabled Bank Accounts of all the beneficiaries," RBI said in a circular.

It said such an account based on the Aadhaar unique national identification number should also be opened for residents of villages with less than 2,000 population for promoting financial inclusion.

The Unique Identification Authority of India (UIDAI), headed by Nandan Nilekani, is entrusted with the task of generating the Aadhaar unique identity cards.

Under the first phase of the project, UIDAI was to enrol 200 million citizens by March 2012. The project aims to provide about 600 million unique identification numbers by 2014.

The scheme was launched in September 2010 and is intended to improve implementation of social sector schemes of the government.

Aadhaar identity cards are accepted as valid documents under the Know Your Customer norms for opening bank accounts, securing mobile connections and cooking gas connections.

The Aadhaar cards will also be used to plug leakages in the government's poverty alleviation programme.

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