No Aadhaar? Your bank account will shut down by December 31

Aadhaar card news: If Aaadhaar is not provided account will cease to be operational.

The government has made Aadhaar mandatory for opening bank accounts and also for financial transactions of Rs 50,000 and above. As per the directive existing bank account holders have been told to furnish Aadhaar number issued by the Unique Identification Authority of India (UIDAI) by December 31, 2017.

This is an important decision and we try to simplify the rule for you in few points.

Aadhaar mandatory for bank accounts, what you should know:

• Existing account holders need to furnish Aadhaar details by December 31.
• If Aaadhaar is not provided by December 31, account will cease to be operational.
• The notification was issued while amending the Prevention of Money-laundering (Maintenance of Records) Rules, 2005.
• This 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.
• For small accounts, which can be opened without having officially valid KYC documents, the amendment said such accounts - which can have maximum deposit of Rs 50,000, can be opened only at bank branches which have core banking solution.
• It can also be opened at a branch where it is possible to manually monitor and ensure that foreign remittance are not credited to such account and stipulated limits on monthly and annual aggregate of transactions and balance are not breached, the amended rules said.
• Such small account shall remain operational initially for a period of 12 months and thereafter for a similar period if the account holder provides evidence that he or she has applied for officially valid identification documents.
• The small account shall be monitored and when there is a suspicion of money laundering or financing of terrorism or other high risk scenarios, the identity of claim shall be established through the production of official valid documents," the amendment also said.
• It is 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 June 1.
• After June 1, if a person does not have an Aadhaar number at the time of opening of account, then he or she has to furnish proof of application of enrolment for Aadhaar and submit the Aadhaar number to the bank within six months of opening of the bank account.
• In case the client, eligible to be enrolled for Aadhaar and obtain a PAN... does not submit the Aadhaar number or the PAN at the time of commencement of an account based relationship with a reporting entity, the client shall submit the same within a period of 6 months from the date of the commencement of the account based relationship.
• However the the clients already having an account based relationship with reporting entities prior to date of this notification, the client shall submit the Aadhaar number and PAN by December 31, 2017."
• It is mandatory to provide PAN number or Form 60 to banks while opening of 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.

OneIndia News