What changed
RBI clarified that NREGA job cards signed by a State Government officer and Aadhaar letters from UIDAI are now officially valid documents for identity under PMLA Rules. This expands the list of acceptable documents for customer due diligence when issuing semi-closed prepaid cards up to ₹5,000.
What it means for you
Banks and prepaid payment instrument issuers can now accept these two additional documents for low-value semi-closed prepaid cards, simplifying onboarding for rural and Aadhaar-linked customers. However, full KYC requirements remain unchanged for other prepaid instruments or higher-value cards.
What you must do
- Update your KYC document checklist for semi-closed prepaid cards up to ₹5,000 to include NREGA job cards and Aadhaar letters.
- Ensure that NREGA job cards are verified as signed by a State Government officer.
- Continue to perform full KYC as per existing AML/PML guidelines for all other prepaid instruments.
- Train frontline staff on accepting these new documents for low-value prepaid card issuance.
Who it affects
Prepaid payment instrument issuers, System providers and participants, Banks issuing semi-closed prepaid cards, Customers in rural areas with NREGA job cards, Aadhaar holders using UIDAI letters
What is the maximum value of semi-closed prepaid cards for which these new documents are valid?
These documents are valid for semi-closed prepaid cards up to ₹5,000, as per the April 27, 2009 guidelines.
Do I still need to do full KYC for other prepaid instruments?
Yes, full KYC as per KYC/AML/PML guidelines must continue for all other prepaid instruments and higher-value cards.
Are NREGA job cards and Aadhaar letters now considered officially valid documents under PMLA?
Yes, they have been added to the definition of officially valid documents under Rule 2(d) of the PMLA Rules 2005, as per the Government notification dated December 16, 2010.