India Pushes Aadhaar: In a bid to push the biometric identity number Aadhaar Card as individuals’ National Identification Number, the Centre on Friday announced that the Aadhaar mandatory for opening new bank accounts as well as for any transaction of Rs 50,000 and above.
Previously, PAN number was mandatory for financial transaction of Rs 50,000 and above and now the Government of India has included Aadhaar as well. So, whenever you make transactions of above 50,000, you need to submit both PAN and Aadhaar to complete the transaction.
Aadhaar now mandate for opening new bank accounts
Existing bank account holders are advised to link their Aadhaar with their bank accounts on or before December 31, 2017, failing which will result the termination of your bank account, as per revenue department notification. The new notification has brought into act by amending the Prevention of Money Laundering Act.
The government in Union Budget 2017 made compulsory to link Aadhaar number issued by the Unique Identification Authority of India (UIDAI) with PAN (Permanent Account Number) to prevent tax evasion by people using multiple PAN numbers.
The new amendment makes Aadhaar compulsory for opening a bank account post June 1st, however, those who don’t have an Aadhaar can submit the proof of enrollment for Aadhaar card and link the Aadhaar number 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 ofthe commencement of the account based relationship.
“Provided that the clients… already having an accountbased relationship with reporting entities prior to date ofthis notification, the client shall submit the Aadhaar number and PAN by December 31, 2017,” the notification said.