Govt makes Aadhaar mandatory for opening bank accounts
Here is a computer-rendered sample of an Aadhaar card. Image source Wikimedia via PageImp. Photograph: (Others)
The government has made quoting of the biometric Aadhaar card mandatory for opening of bank accounts and for financial transactions of Rs 50,000 and above.
Existing bank account holders have been asked to furnish the Aadhaar number by December 31, 2017, failing which the account will cease to be operational, according to a revenue department notification.
The Aadhaar card is issued by the Unique Identification Authority of India.
The government has made linking of the Aadhaar number with the Permanent Account Number (PAN) compulsory in this year's budget to avoid individuals from using multiple PANs to evade taxes.
A notification issued by the government amended the Prevention of Money-laundering (Maintenance of Records) Rules, 2005.
The notification manded the quoting of Aadhaar along with the PAN or Form 60 by individuals, companies and partnership firms for all financial transactions of Rs 50,000 or above.
After June 1, a person who does not have an Aadhaar number at the time of opening of account, will have to furnish proof of application of enrolment for Aadhaar and submit the Aadhaar number to the bank within six months of opening of the bank account.
"In case the client, eligible to be enrolled for Aadhaar and obtain a PAN... Does not submit the Aadhaar number or the PAN at the time of commencement of an account based relationship with a reporting entity, the client shall submit the same within a period of 6 months from the date of the commencement of the account based relationship.
"Provided that the clients... Already having an account based relationship with reporting entities prior to date of this notification, the client shall submit the Aadhaar number and PAN by December 31, 2017," the notification said.
For companies opening bank accounts, Aadhaar number of managers, or employees holding an attorney to transact on the company's behalf will have to be provided.
So far, as per the PMLA Rules it is mandatory to provide PAN number or Form 60 to banks while opening of accounts or for high value transactions.