Aadhaar mandatory to open Bank Accounts

The government has made having an Aadhaar card mandatory to open bank accounts and to conduct financial transactions of Rs.50,000 and above. It is also mandatory for those having existing accounts to submit the unique identification number by December.

Those who do not submit the details by December-end, run the risk of their accounts turning invalid.

While the income tax department had earlier announced the decision to make Aadhaar mandatory for banking and financial purposes, the new regulations were notified through amendments to rules related to maintenance of records under the Prevention of Money Laundering Act.

The move came around the time SC upheld validity of an I-T Act provision, making Aadhaar a must for allotment of PAN cards and filing I-T returns. The apex court had granted `partial relief ' to those who do not have an Aadhaar number or an Aadhaar enrolment ID, ruling that their PAN will not be cancelled for the time being.

The notification 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. After 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 enrolment for Aadhaar and submit the Aadhaar number to the bank within six months of opening the bank account. So far, it was mandatory to provide PAN number or Form 60 to banks while opening 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 if there is any transaction of an amount equal to or exceeding Rs.50,000.

No comments: