Using 7Li NMR shift data, the anomalous local moment induced by spinless Li impurities persists below T(c) in YBa 2Cu 3O6+y. In the underdoped regime, the moments retain their Curie law below Tc. In contrast, near optimal doping, the large Kondo screening observed above Tc (TK = 135 K) is strongly reduced below Tc as expected theoretically when the superconducting gap develops. The limited spatial extent of the induced moment (on first near neighbor Cu) is not drastically modified below Tc, which allows a comparison with STM determination of the local density of states. Our results constrain theoretical models of the impurity electronic properties.