Aadhaar Mandatory for New Bank Account, Transactions Above 50K

Existing bank account holders have been asked to furnish their Aadhaar number by 31 December 2017.

The government in Budget 2017 mandated seeding of Aadhaar number with PAN to avoid individuals using multiple PAN’s to evade taxes. (Photo: Reuters)

The government has made the declaration of Aadhaar ID mandatory for opening of bank accounts, as well as for any financial transaction of Rs 50,000 and above.

Existing bank account holders have been asked to furnish the Aadhaar number issued by the Unique Identification Authority of India (UIDAI) by 31 December 2017, failing which the account will cease to be operational, according to a revenue department notification.

The Supreme Court recently upheld the government’s decision to link Aadhaar and PAN for filing Income Tax returns. However, the court did not make furnishing Aadhaar while filing tax returns for those who have not been registered on Aadhaar.

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.

Also Read: The Aadhaar Debate: Implications of the SC Judgement Explained

The amendment makes it mandatory for individuals, companies, and partnership firms to quote Aadhaar along with PAN or Form 60 for all financial transactions of Rs 50,000 or above with effect from 1 June.

Post 1 June, 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. 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.

Also Read: Aadhaar-Privacy Debate Misses One Thing: Personal Data Discipline

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.

Also Read: Exclusive | How Safe is Aadhaar? UIDAI CEO Answers on The Quint

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