SBI (State Bank of India), the country’s biggest lender, has reportedly stopped opening of digital accounts based on Aadhar from its YONO platform. This move comes after the order issued on Aadhar by the Supreme Court on the 26th of September, 2018, which clearly states that it is not compulsory to link the Aadhar 12-digit number for setting up banking accounts or availing of any banking services.
After this decision of the Supreme Court, SBI has stopped the paperless bank account opening feature via its YONO (You Only Need One) platform on a temporary basis and customers have to open accounts by visiting their nearest branches at the moment. SBI has asked for more clarity and guidance from the Reserve Bank of India (RBI) with regard to swiftly zeroing in on an alternative option.
As per reports, the bank requires a few clarifications from the RBI since e-KYC is not being allowed at present and matters have already been discussed with the banking regulator. Once adequate clarifications are received by SBI, e-KYC will be started again according to the latest reports. The YONO digital platform was unveiled last November and provides all SBI services, lifestyle products and financial services under a single roof and also includes the facility of opening an SBI account without going to the branch.
Through YONO, SBI customers can easily opt for fund transfers while choosing pre-approved personal loans without any paperwork. They can also choose the overdraft facility against their fixed deposits. SBI is targeting an increase in its customer base to 250 million individuals via the YONO platform within a period of 24 months. 2.5 million people have already registered on YONO by August this year according to the reports. Prior to the order issued by the Supreme Court, Aadhar was compulsory for several banking and telephony services and was a one-stop requirement for KYC (Know-Your-Customer) needs.