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RTI reveals RBI hasn’t ordered linking Bank A/cs with Aadhaar

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Aadhaar card

[vc_row][vc_column][vc_column_text]Reserve Bank of India confirms it has not issued any instruction so far regarding mandatory linking of Aadhaar number with bank accounts

If you are one of the many bank account holders in the country who have been harangued by pesky calls, messages and e-mails from banks or “central government orders” claiming that your bank accounts will be blocked if they aren’t linked with your Aadhaar number, then here’s some news for you.

In a reply to Yogesh Sapkale of online news portal moneylife.in, sought under the Right to Information (RTI) Act, the Reserve Bank of India has clarified that: “The Government has issued a Gazette Notification GSR 538(E) dated 1 June 2017 regarding Prevention of Money laundering (Maintenance of Records) Second Amendment Rules, 2017, inter-alia, making furnishing of Aadhaar (for those individuals who are eligible to be enrolled for Aadhaar) and permanent number (PAN) mandatory for opening a bank account. It may be noted that Reserve Bank has not yet issued instruction in this regard.”

The central bank’s response, in layman’s terms, means that the order to link your bank accounts with your unique identity Aadhaar number has not been authorised by the RBI – which is responsible for laying down guidelines and rules for operations of banking institutions. Instead, the so-called mandatory order has been issued by the Prime Minister Narendra Modi-led BJP government. In effect, the RBI’s response means that it is the Modi government that is forcing all banks to ask their customers for linking their bank accounts, in their own capacity, something that can be construed as a violation of an earlier order over Aadhaar that has been issued by the Supreme Court as well as a case of executive overreach.

According to moneylife.in, the RBI was asked through an RTI application to provide “copy of the file along with file notings regarding mandatory linking of Aadhaar number with bank accounts”. The RBI responded to the application saying it “has not issued any instruction so far regarding mandatory liking of Aadhaar number with bank accounts.”

The portal adds further that to Sapkale’s explicit query on whether “the RBI had taken permission from the Supreme Court for mandatory linking of bank accounts with Aadhaar number, especially when the apex court had restricted its usage for six schemes, the Reserve Bank stated that is has not filed any petition before the SC.”

The RBI’s clarification comes at a time when questions are being raised by economists, Opposition leaders, activists and common citizens alike over the legal validity of the perceived coercion of bank account holders to link their accounts with their respective Aadhaar numbers even as the matter is still pending before the Supreme Court for resolution. So far, the SC has only upheld the mandatory linking of Aadhaar with six schemes- those under which the Centre is providing direct benefits or subsidies to individuals.

The central bank’s response also comes close on the heels of the appalling tragedy in Jharkhand where a minor girl reportedly died of starvation because her family couldn’t get food items from a government-run shop as their ration card had not been linked with their Aadhaar number.

Moneylife.in notes that the Centre’s Gazette Notification [GSR 538(E)], which the RBI has mentioned in its reply, “is also in contravention with the orders passed by five-judge Bench of the Supreme Court as well as Aadhaar Act 2016.”

In its order on 15 October 2015, the apex court had said:

“After hearing the learned Attorney General for India and other learned senior counsels, we are of the view that in paragraph 3 of the Order dated 11 August 2015, if we add, apart from the other two Schemes, namely, PDS Scheme and the LPG Distribution Scheme, the Schemes like the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), National Social Assistance Programme (Old Age Pensions, Widow Pensions, Disability Pensions) Prime Minister’s Jan Dhan Yojana (PMJDY) and Employees’ Provident Fund Organisation (EPFO) for the present, it would not dilute earlier order passed by this Court. Therefore, we now include the aforesaid Schemes apart from the other two Schemes that this Court has permitted in its earlier order dated 11 August 2015. We impress upon the Union of India that it shall strictly follow all the earlier orders passed by this Court commencing from 23 September 2013. We will also make it clear that the Aadhaar card Scheme is purely voluntary and it cannot be made mandatory till the matter is finally decided by this Court one way or the other.”

The apex court is scheduled to hear a bunch of Aadhaar-related petitions in November.

The RBI reply, though bringing clarity on its role – or rather the absence of it – in sanctioning linking of Aadhaar numbers with bank accounts of customers, doesn’t however explain whether individuals can object to coercion from their respective banks when asked to link their accounts with their unique identification number.[/vc_column_text][/vc_column][/vc_row]

India News

Mamata Banerjee warns BJP, EC over Bengal polls, says they will be accountable

Mamata Banerjee holds BJP and Election Commission responsible for any incidents during Bengal polls, raising concerns over officer transfers.

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West Bengal Chief Minister Mamata Banerjee has held the Bharatiya Janata Party (BJP) and the Election Commission of India responsible for any untoward incidents in the state during the upcoming assembly elections, following the transfer of key officials.

Addressing concerns over administrative reshuffles, Banerjee said that changes involving senior bureaucrats, including the chief secretary and home secretary, could affect governance and law and order in the state during a crucial period.

The Trinamool Congress chief also announced candidates for 291 constituencies for the elections scheduled to be held in two phases on April 23 and 29.

Criticising the Election Commission, Banerjee alleged that the transfers were being carried out in a manner that benefits the BJP. She questioned the timing of the decisions and said such actions weaken the state administration at a sensitive time.

She further raised concerns about disaster management and essential services, stating that experienced officials familiar with the state’s situation have been replaced. According to her, this could impact administrative efficiency if any emergency arises before the new government is formed.

Protecting Bengal’s identity

Banerjee emphasised that the election is not merely about forming a government but about safeguarding Bengal’s identity and existence. She accused the BJP of misusing central agencies and attempting to influence the electoral process.

She urged that elections should be conducted peacefully, without external interference, and in line with democratic principles. The chief minister also expressed confidence that her party would return to power with a stronger mandate.

Appealing to voters, she called for support for the Trinamool Congress, asserting that the people of Bengal will ultimately decide the outcome and protect their democratic rights.

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Centre assures action on LPG supply disruption, court closes distributors’ plea

The Bombay High Court closed a plea by LPG distributors after the Centre assured diplomatic efforts to stabilise supply amid global disruptions.

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LPG cylinder

The Union government on Tuesday informed the Bombay High Court that it is taking diplomatic steps to address disruptions in Liquefied Petroleum Gas (LPG) supply linked to the ongoing Iran-Israel conflict, following which the court disposed of a petition filed by LPG distributors.

Appearing before the Nagpur bench, Solicitor General Tushar Mehta said the Centre was actively engaged in international-level negotiations to stabilise LPG supply. However, he noted that specific measures could not be disclosed due to their sensitive nature.

The matter was heard by a division bench comprising Justices Anil S Kilor and Raj D Wakode. The bench accepted the government’s assurances and closed the plea.

Distributors flagged supply disruption in Vidarbha

The petition was filed by six LPG distributors, including Omkar Sales, who raised concerns over disruptions in supply chains across Maharashtra’s Vidarbha region. They claimed the situation had led to a significant shortage of LPG for domestic consumers.

The distributors, dependent on Confidence Petroleum India Ltd (CPIL), alleged that despite directives prioritising domestic consumption, LPG was being diverted for export to capitalise on high international prices.

Government cites policy compliance, CPIL denies diversion

The petitioners referred to recent orders issued under the Essential Commodities Act and the Natural Gas (Supply Regulation) Order, 2026, which mandate prioritising household LPG supply during crises.

However, CPIL rejected the allegations, stating it was fulfilling pre-existing export commitments and had not violated any policy norms.

Court had earlier termed issue ‘serious’

During earlier hearings, the court had described the matter as “serious” and of “grave importance”, issuing notices to the Centre and the Ministry of Petroleum and Natural Gas.

On Tuesday, the Centre reiterated that macro-level supply challenges arising from global geopolitical tensions were being handled through diplomatic channels. It also said that any localised supply issues could be resolved by state authorities.

Taking note of these submissions, the bench disposed of the petition.

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Om Birla likely to move motion to revoke suspension of 8 opposition MPs today

The Lok Sabha is likely to revoke the suspension of eight opposition MPs today, with a motion expected to be moved by the government following consensus on maintaining discipline.

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Om Birla

The suspension of eight opposition Members of Parliament in the Lok Sabha is expected to be revoked on Tuesday, with Speaker Om Birla likely to initiate the process, according to sources.

The MPs, including seven from the Congress and one from the CPI(M), were suspended on February 3 for unruly conduct during the first phase of the Budget session after a resolution was adopted by the House.

Motion to be moved in Lok Sabha

Congress leader K Suresh said that Parliamentary Affairs Minister Kiren Rijiju is expected to move a motion around noon seeking revocation of the suspensions.

Although the suspension was initially imposed for the entire session, scheduled to conclude on April 2, opposition parties have consistently demanded reconsideration since the second phase of the session began on March 9.

Agreement on maintaining decorum

At a recent meeting convened by the Speaker, both ruling and opposition sides reportedly agreed on maintaining discipline in the House.

Key understandings include:

  • No member will enter the well of the House to protest
  • Papers will not be torn or thrown toward the Chair
  • MPs will not climb onto officials’ tables

The Lok Sabha Secretariat has also reminded members to keep areas within the Parliament premises obstruction-free to ensure smooth movement.

Speaker raises concern over conduct

Earlier, Om Birla had expressed concern over the use of banners, placards, and inappropriate language by some MPs. In a letter to party leaders, he stressed the need to uphold the dignity and traditions of parliamentary democracy.

He had also indicated that actions like suspension are taken in cases of serious misconduct, such as climbing onto tables during proceedings.

Suspended MPs

The suspended MPs include Gurjeet Singh Aujla, Hibi Eden, C Kiran Kumar Reddy, Amarinder Singh Raja Warring, Manickam Tagore, Prashant Padole, Dean Kuriakose (Congress), and S Venkatesan (CPI-M).

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