Post Office Savings Bank Account: The postal department has unveiled plans for implementing a paperless Know Your Customer (KYC) system, allowing customers to open Post Office Savings Bank (POSB) accounts and perform transactions using Aadhaar biometric verification. According to the directive released on January 1, 2025, this eKYC framework will be deployed gradually, starting from January 6, 2025.
The initial phase of the eKYC implementation will concentrate on registering new customers.
- This encompasses establishing Customer Information on File (CIF) and initiating individual Post Office Savings Accounts (POSA) at Departmental Post Offices through Aadhaar-based eKYC authentication.
- The second phase will incorporate additional transactions through Aadhaar authentication (eKYC), including:
- Opening and closing accounts for various schemes such as Recurring deposit, Time deposit, Monthly Income Scheme, Senior Citizens Savings Scheme, and related transactions.
- Creating and closing joint, minor and authorised savings accounts, handling their transactions and various operational aspects
- Processing eKYC account transactions via DARPAN, eBanking, M-Banking and other platforms
- Closing individual savings accounts
According to an ET report, the postal department’s directive says, “CIF of the customers who are willing to provide the consent for Aadhaar e-KYC shall be created on Aadhaar Biometric Authentication URL, such case the details (Name of the customer, Father or Husband name, DOB, Gender, Address with PIN Code) will be fetched from Central Identities Data Repository (CIDR) of Unique Identification Authority of India (UIDAI).”
If the father’s or husband’s name is not automatically retrieved, users can manually edit this information. However, if other data fails to fetch, customers must follow the standard CIF creation process instead of the eKYC route.
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For Post Office Savings Accounts (POSA) linked to e-KYC, transactions can be processed either through Aadhaar Authentication or traditional paper vouchers. When someone other than the account holder makes a deposit, a pay-in-slip is mandatory.
“Changes related to other POSB schemes and improvements in the eKYC process are yet to be made in Finacle. Till such things are made, it is proposed to obtain the consent of customers in physical form for Aadhaar e-KYC along with specimen signature of the depositor and upload the specimen signature of depositor and upload the signature in Finacle. Further, account opening form with minimum shall also be obtained,” the order stated.
Aadhaar-authenticated transactions do not require vouchers for any deposit amount or withdrawals up to Rs 5,000. However, third-party deposits require paper-based processing with pay-in-slips. The existing procedure continues for paper-based transactions.
Post Offices must display Aadhaar numbers in the masked format XXXX-XXXX–on all records, documents, and account applications. Postmasters should obscure the initial eight digits of unmasked Aadhaar numbers using black ink, sketches, or similar methods.
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The order stated: “All the post offices and CBS-CPCs should ensure that the Aadhaar Number is masked in all the existing documents like AOF, KYC Form etc. containing the Aadhaar Number including the copy of the Aadhaar obtained.”
Whilst physical presence is not mandatory for account opening through SAS or MPKBY agents, the Department of Posts advises completing e-KYC verification during the account creation process.
