Your Bank Account Will Become Invalid: 10 Things You Need to Know about the New Rule of the Government
The central government of India has announced that the Aadhaar card mandatory for opening bank accounts and conducting financial transactions of Rs 50,000 and above. Moreover, existing bank account holders have been asked to submit their Aadhaar cards issued by the Unique Identification Authority of India (UIDAI) to their respective banks by December 31, 2017, this year. If the account holder is unable to fulfill this requirement that government shall make their accounts invalid.
There are 10 things that you must know about the new rule of the central government regarding banking using Aadhar Card:
- The move is aimed at keeping a check on small accounts. Currently, accounts can be opened without having valid Know Your Customer documents (KYC) for a maximum deposit of Rs. 50,000.
- The move to link all existing bank accounts with Aadhaar number comes days after the Supreme Court of India upheld an I-T Act provision that makes Aadhaar compulsory for allotment of PAN cards and for filing Income Tax returns.
- The last date to provide Aadhaar number issued by the Unique Identification Authority of India (UIDAI) is December 31, 2017. Upon failing to do the same the user’s bank account will become non-functional or invalid.
- Aadhaar details are also compulsory for the opening of a new bank account.
- Effective from June 1, 2017; citizens of India who are unable to provide Aadhaar number at the time of account opening will have to provide Aadhaar enrolment number.
- The Aadhaar number will need to be provided to the bank within six months of the opening of the bank account.
- The notification issued by revenue department also mandates the quoting of Aadhaar, or the “Aadhaar card”, for any transaction of Rs. 50,000 or above
- Going forward, small banks’ accounts, with a maximum deposit of Rs. 50,000, can be opened only at branches with core banking solution.
- Small deposit bank accounts can also be opened at a branch where it is possible to physically monitor and guarantee that foreign payment is not credited to such account and set limits on a monthly and annual total of transactions and balance are not violated.
- The new rule also applies to companies and partnership firms. They need to quote Aadhaar number along with PAN or Form 60 for all financial transactions of Rs. 50,000 or above effective from June 1.
Commenting on this development, West Bengal Chief Minister Mamata Banerjee tweeted, “The poorest of the poor, the marginalized people will be the worst sufferers if #Aadhaar is made mandatory unilaterally”. “#Aadhaar has serious issues about privacy. Govt must not make it mandatory before 100% coverage is achieved,” a second tweet read.