**Summary:**
RBI Circular RBI/2019-20/40, FIDD.CO.LBS.BC.No.09/02.01.001/2019-20, dated August 13, 2019, addresses the implementation of the Direct Benefit Transfer (DBT) scheme. This circular is directed to Chairmen, Managing Directors, and CEOs of Scheduled Commercial Banks, including Regional Rural Banks, Small Finance Banks, and Payments Banks. It references previous circulars RPCD.CO.LBS.BC.No.75/02.01.001/2012-13 dated May 10, 2013, and RPCD.CO.LBS.BC.No.11/02.01.001/2013-14 dated July 9, 2013, regarding the use of Aadhaar for DBT. Banks are instructed to ensure that the opening of bank accounts and the seeding of Aadhaar numbers for DBT beneficiaries comply with Section 16 of the Master Direction - Know Your Customer (KYC) Direction, 2016 (updated as of May 29, 2019) and the extant provisions of the Prevention of Money Laundering (PML) Rules. This circular supersedes Circular FIDD.CO.LBS.BC.No.17/02.01.001/2015-16 dated January 14, 2016, concerning Aadhaar seeding in bank accounts for DBT. The issuing department is the Financial Inclusion Development Department, Central Office, Reserve Bank of India. Gautam Prasad Borah, Chief General Manager-in-Charge, is the contact person. The central office is located at 10th Floor, Central Office Building, Shahid Bhagat Singh Marg, P.B.No.10014, Mumbai – 400001. The contact telephone numbers are 022-22601000, 91-22-22621011/22610943/22610948 and the email address is cgmincfidd@rbi.org.in. The circular also includes a caution against responding to fraudulent communications requesting personal banking information.
Key Entities Referenced
Reserve Bank of India (RBI): The central bank of India, which issued the circular.
Direct Benefit Transfer (DBT) Scheme: A government initiative to transfer subsidies directly to beneficiaries through their bank accounts.
Aadhaar: A 12-digit individual identification number issued by the Unique Identification Authority of India.
Scheduled Commercial Banks: Banks in India that are listed in the Second Schedule to the Reserve Bank of India Act, 1934.
Regional Rural Banks (RRBs): Indian Banks operating at a regional level in different States of India.
Small Finance Banks: A type of niche bank in India.
Payments Banks: A type of niche bank in India, allowed to accept deposits and provide payment services.
Know Your Customer (KYC) Direction, 2016: A regulatory guideline issued by the Reserve Bank of India (RBI) outlining the requirements for financial institutions to verify the identity of their customers.
RBI/2019-20/40
FIDD.CO.LBS.BC.No.09/02.01.001/2019-20 August 13, 2019
The Chairmen / Managing Directors & CEOs
Scheduled Commercial Banks (including Regional Rural Banks),
Small Finance Banks and Payments Banks
Madam / Dear Sir,
Direct Benefit Transfer (DBT) Scheme – Implementation
Please refer to Circular RPCD.CO.LBS.BC.No.75/02.01.001/2012-13 dated May 10, 2013
and RPCD.CO.LBS.BC.No.11/02.01.001/2013-14 dated July 9, 2013 regarding the use of
Aadhaar to facilitate delivery of social welfare benefits by direct credit to the bank accounts
of beneficiaries.
2. In this connection, banks are advised to ensure that opening of bank accounts and
seeding of Aadhaar numbers with existing or new accounts of eligible beneficiaries opened
for the purpose of Direct Benefit Transfer (DBT) under social welfare schemes, is in
conformity with the provisions listed under Section 16 of the Master Direction - Know Your
Customer (KYC) Direction, 2016 (updated as on May 29, 2019) and extant provisions of the
Prevention of Money Laundering (PML) Rules.
3. The above guidelines will be in supersession of Circular
FIDD.CO.LBS.BC.No.17/02.01.001/2015-16 dated January 14, 2016 on “Direct Benefit
Transfer (DBT) Scheme – Seeding of Aadhaar in Bank Accounts – Clarification”.
Yours faithfully,
(Gautam Prasad Borah)
Chief General Manager-in-Charge
�वत् तीय समावेशन और �वकास �वभाग, केन्द्र�य कायार्लय,10 वी मंिजल, क�द्र�य कायालर् य भवन, शह�द भगत�सहं माग,र्पोस्ट बॉक्स सं. 10014, मंबु ई -400001
Financial Inclusion & Development Dept, Central Office,10th Floor, Central Office Building, Shahid Bhagat Singh Marg, P.B.No.10014, Mumbai-1
टेल� Tel:022-22601000 फैक्सः 91-22-22621011/22610943/22610948 ई -मेल : cgmincfidd@rbi.org.in
�हदं � आसान है,इसका प्रयोग बढ़ाइए।
“चेतावनी: मेल �रज़व र् बक� -द्वारा डाक, एसएमएस या फोन कॉल के ज�रए �कसी क� भी व् यिक्तगत जानकार� जैसे बक� के खाते का ब् यौरा, पासवड र् आ�द नह�ं मांगी जाती
है। यह धन रखने या देने का प्रस् ताव भी नह�ं करता है। ऐसे प्रस् ताव� का �कसी भी तर�के से जवाब मत द�िजए।"
Caution: RBI never sends mails, SMSs or makes calls asking for personal information like bank account details, passwords, etc. It never
keeps or offers funds to anyone. Please do not respond in any manner to such offers.