June 16, 2017

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Now, Aadhaar must for opening bank accounts; Centre sets deadline for existing customers

Written By Admin on Jun 16, 2017 | June 16, 2017


NEW DELHI: The government on Friday announced its decision making the Aadhaar card mandatory for opening bank accounts and conducting financial transactions of Rs 50,000 and above.

Moreover, existing bank account holders have been asked to submit their Aadhaar cards issued by the Unique Identification Authority of India (UIDAI) to banks by December 31 this year, failing which banks will invalidate their accounts.

The move comes days after the Supreme Court upheld the validity of an I-T Act provision making Aadhaar a must for allotment of PAN cards and for filing Income Tax returns.

The apex court had granted a "partial relief" to those who do not have an Aadhaar or an Aadhaar enrolment ID, ruling that the PAN of such individuals will not be cancelled for the time being.

The notification issued amending the Prevention of Money Laundering (Maintenance of Records) Rules, 2005, mandated quoting of Aadhaar along with PAN or Form 60 by individuals, companies and partnership firms for all financial transactions of Rs 50,000 or above with effect from June 1.

Post June 1, if a person does not have an Aadhaar number at the time of opening of account, then he has to furnish proof of application of enrollment for Aadhaar and submit the Aadhaar number to the bank within six months of opening of the bank account.

So far, it was mandatory to provide PAN number or Form 60 to banks while opening of accounts or for high value transactions.

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.

In all other cases, identity should be verified while carrying out transaction of an amount equal to or exceeding Rs 50,000, and in any international money transfer operation.

The government's latest directive comes in the backdrop of a raging debate over Aadhaar and its "mandatory" usages.

(With PTI inputs)
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