Government Makes Aadhaar Mandatory for Bank Accounts

Government Makes Aadhaar Mandatory for Bank Accounts

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Giving the important announcement on Friday, the government said that the Aadhaar number is now mandatory for opening a bank account and for financial transactions of Rs. 50,000 or more. December 31 to all current bank account holders. All current bank account holders have been asked to deposit the Aadhaar numbers up to December 31, 2017, If not, their accounts will become invalid. According to the notification of the revenue department, all current bank account holders have been asked to deposit the Aadhaar numbers issued by the Indian Unique Identification Authority till December 31, 2017, if they do not, their accounts will not be functional.

Know the important things related to it

  • In the budget of 2017-18, the government had already made it necessary to link the Aadhar with the permanent account number (PAN) so that people could not use more than one PAN card to avoid tax.
  • In the notification issued by amending the Prevention of Money Laundering (Record Maintenance) Prevention Rules, 2005, for transactions of 50000 rupees or more by individuals, companies or partying companies, it is mandatory to submit Aadhar along with PAN number or Form No. 60.
  • While revising the rules for small accounts, the amendment states that account holders without KYC documents or deposits of up to 50000 rupees can be opened only in those branches where the core banking solutions are present. According to the new rules – such accounts can be opened in the same branch where employees can monitor them and ensure that money from such accounts is not sent from abroad. Those accounts should follow the prescribed limits of the transaction in the month and year, and the balance is not violated.
  • Such accounts would initially continue for 12 months and after that, if the account holder provides proof that he has applied for official valid verification document, then he or she can be given 12 months time.
  • “The small account will be monitored, and whenever there is a doubt of financing or funding of terrorism or any the other main risk scenario, then the claim will be identified as the official legal documents.”
  • The amendment has been made mandatory to mention the Aadhar with PAN or Form No. 60 for transactions of 50000 rupees or more, by individuals, companies or participating companies from June 1. If there is no Aadhaar number at the time of opening the account, then the applicant will have to show proof of the application made for the base and deposit the Aadhaar number within six months of opening the account.



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