What is need of link Aadhar to the bank account?
The Reserve Bank of India on Saturday issued a clarification, saying linking of Aadhaar with bank accounts was mandatory in cases under the prevention of money-laundering rules. The central bank was responding to news reports that quoted an RTI reply on linking the 12-digit biometric number with accounts by December 31.
On 14 October, a fresh petition was filed in the Supreme Court challenging the government’s decision to link bank accounts and mobile phones to the 12-digit unique identity number issued by the Unique Identification Authority of India (UIDAI).
Some news items have appeared in a section of the media quoting a reply to an RTI application that Aadhaar number linkage with bank accounts is not mandatory. “The Reserve Bank clarifies that, in applicable cases, linkage of Aadhaar number to the bank account is mandatory under the Prevention of Money -laundering (Maintenance of Records) Second Amendment Rules, 2017 published in the Official Gazette on June 1, 2017. These Rules have statutory force and, as such, banks have to implement them without awaiting further instructions,” the RBI said.
The government had notified under PMLA that every bank account should be linked to Aadhaar by 31 December, failing which the accounts will become inoperative.
Should you wait for the Supreme Court ruling then?
Considering that the rule to make Aadhaar mandatory for opening new accounts has already been enforced by banks following the finance ministry directive, it would appear that as per current situation, existing account holders will not be given an exemption.
How to Link Aadhaar Card to Bank Account – Online/Offline?
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Our Government is encouraging people to update Aadhaar card details with their respective bank accounts. People often get confused with the process of Linking Aadhaar card with the bank account. The process is actually quite easy and can be completed easily. I will be explaining the methods that will be applicable to almost all Banks. No matter if your Bank is State bank of India(SBI), Punjab National Bank(PNB), Oriental Bank of Commerce(OBC), HDFC, ICICI, Canara, Axis Bank or any other.
Linking Aadhaar Card with Bank Account :
This can be done in following two ways :
This is an extremely easy method but it is important that you have availed the internet banking facility as well as you need to make sure that your Bank is giving this facility.
What exemption given to accounts?
Exemption given only to small accounts. Not all types of bank accounts will become un-operational if they are not linked with Aadhaar before the deadline. Small accounts are exempt from this directive as these can be opened even without Aadhaar.
A small account is a bank savings account where:
1. The aggregate of all credits in a financial year does not exceed Rs 1 lakh;
2. The aggregate of all withdrawals and transfers in a month does not exceed Rs 10, 000;
3. . The balance at any point of time does not exceed Rs 50, 000.
Why its become mandatory?
The government in Budget 2017 had already mandated seeding of Aadhaar number with Permanent Account Number to avoid individuals using multiple PANs to evade taxes.
The Reserve Bank clarifies that, in applicable cases, linkage of Aadhaar number to bank account is mandatory under 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.
This year in June, the government had made Aadhaar mandatory for opening 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 December 31, 2017, failing which the account will cease to be operational,” the government notification had said. According to reports, the RBI had not issued any notification for linking of Aadhaar number with the customers’ bank account.
In RTI reply, RBI was quoted as saying: “The Government has issued a Gazette Notification GSR 538(E) dated 1 June 2017 regarding Prevention of Money laundering (Maintenance of Records) Second Amendment Rules, 2017, inter-alia, making furnishing of Aadhaar (for those individuals who are eligible to be enrolled for Aadhaar) and permanent number (PAN) mandatory for opening a bank account. It may be noted that Reserve Bank has not yet issued an instruction in this regard.”
The report also revealed that the central bank has not even filed any petition with the Supreme Court on seeking explicit permission of linking the two said documents. “RBI has not filed any petition with the Supreme Court,” the RBI said in response to the query.