📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    Under what circumstances must Reporting Entities (REs)

    obtain the Aadhaar number from an individual during the Customer Due Diligence (CDD) process?
    A When the individual is an Indian citizen applying for an account Correct Answer Incorrect Answer
    B When the individual is not a resident of India Correct Answer Incorrect Answer
    C When the individual seeks benefits or subsidies under a scheme notified under Section 7 of the Aadhaar Act, 2016 Correct Answer Incorrect Answer
    D When the individual refuses to provide any other identification document Correct Answer Incorrect Answer
    E When the individual wants to open a joint account with another party Correct Answer Incorrect Answer

    Solution

    As per the provisions of the Aadhaar Act, 2016, and RBI’s KYC Master Directions: • REs must obtain the Aadhaar number from individuals only when they seek benefits or subsidies under schemes specifically notified under Section 7 of the Aadhaar Act. • In other cases, Aadhaar is treated as an OVD (Officially Valid Document) and is not mandatory. • This ensures that Aadhaar is primarily used for the targeted delivery of government subsidies and benefits, while other forms of identification remain valid for general account opening or CDD purposes.

    Practice Next
    More Accounts Questions

    Relevant for Exams:

    ask-question