Banking News

Aadhar mandatory for opening bank account,large transactions

Aadhar mandatory for opening bank account,large transactions

The Union government has made Aadhaar number mandatory for opening the bank accounts, as well as conductiong financial transactions of Rs.50000.00 and above.The  existing customers of banks who have not linked Aadhar number issued by the Unique Identification Authority of India (UIDAI) to their bank is now required to link the same before December 31, 2017. Not disclosing the Aadhar number by December 31, 2017, the bank account of such person will become non-functional from January1,2018. For new accounts from post June 1,2017, people who are unable to provide Aadhar number at the time of opening bank account must provide Aadhar enrollment number and then within 6 months of openining the account Aadhar number shall be furnished to the bank.

Financial transactions:

The notification is issued by amendments to the Prevention of Money-laundering (Maintenance of Records) Rules, 2005. In terms of the new notification, 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 is mandatory. Going forward, small banks’ accounts,  which can be opened without having officially valid KYC documents with a maximum limit of deposit up to Rs.50000.00, the PMLA amendment permits opening of such accounts only at bank branches which have the core banking solution.However, the account may be opened at a branch where it is possible to manually monitor and ensure that foreign remittances are not credited to such accounts. Further, the stipulated limits on the monthly and annual aggregate of transactions and balance are not breached.

The source said that in the cases of companies opening bank accounts, the Aadhar 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 while carrying out transactions of an amount equal to or exceeding Rs 50,000, and in any international money transfer operation.Going forward, towards implementation of the Aadhar requirement under the companies law, the Corporate Affairs Ministry has already asked individual stakeholders to obtain Aadhaar at the earliest for “integrating their details with MCA 21.

(2) Comments

  1. Srinivasan iyengar

    Dear Sir, Greetings of the day! Just a small correction to above Aadhaar related information, timeline for linking has been extended indefinitely. Also, there are changes to the KYC-AML requirement as per RBI Master Direction dated 20.04.2018

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