Aadhaar Card is mandatory for Bank Accounts

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Aadhaar Card is mandatory for Bank AccountsThe central government recently announced that Aadhaar card is mandatory for bank accounts. It shall be mandatory to link Aadhaar numbers to all non-small bank accounts, failing which, access to the bank accounts will be disabled after December 31. This requirement has been brought into the law via Prevention of Money-laundering (Maintenance of Records) (Second Amendment) Rules, 2017 which have been notified by the government under powers delegated to it by the parliament through the Prevention of Money Laundering Act, 2002 (PMLA).

Government has made Aadhaar card mandatory for opening new accounts. It has noted that all existing bank accounts will have to be linked with Aadhaar number by December 31, 2017 or else they will be declared invalid.

More significantly, not only Aadhaar Card has been mandatory for opening new accounts but also for carrying out high-value transactions. The government has said that transactions worth Rs 50,000 or more will now require Aadhaar number. This is similar to how PAN number was required for high-value transactions. But now instead of PAN, consumers will have to quote Aadhaar number. While the deadline for linking bank accounts to Aadhaar number is the end of the year, it is not yet clear since when quoting Aadhaar for transactions will become mandatory.

The government move to link all bank accounts with Aadhaar number comes days after the Supreme Court partially struck down the government proposal to make Aadhaar mandatory for filing of tax returns. While the government wanted all tax payers to quote Aadhaar number, the court said that only those who have the Aadhaar could be compelled to do so. Those who do not have Aadhaar number can file the tax without it after July 1 and their PAN card will not be invalidated, noted the court. However, the latest move from the government ensures that all tax payers, irrespective of the Supreme Court directive, will have to quote Aadhaar number while filing the tax returns.

Aadhaar Card is mandatory for Bank Accounts

The important points:

1- Aadhaar number is now mandatory for opening any new bank account.

2- It is now mandatory to link Aadhaar number with a bank account, even if your bank account is fully KYCed. This has to be done by December 31, 2017.

3- It is now mandatory to quote Aadhaar number in case of a transaction worth Rs 50,000 or more.

4- In case you don’t have Aadhaar number, you will not be able to avail banking services after December 31.

Namaste.

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