Government in India has made Aadhaar Number mandatory for opening Bank accounts and conducting any financial transaction of more than Rs 50,000. They have not mentioned the type of financial transaction. Government has also set deadline of December 31st as the last date for seeding individual Aadhaar with account number. This is the another requirement by government other than the making Aadhaar Card compulsory for linking PAN card and e filling of Income Tax returns.
All existing bank account holders are needed to submit their Aadhaar cards issued by the Unique Identification Authority of India (UIDAI) to banks by December 31 this year, failing which banks will invalidate their accounts.
Government has released the notification amending the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, although dated June 1. It says that that individuals who are eligible to be enrolled for an Aadhaar number need to provide that number and the Permanent Account Number (PAN) to open a bank account or conduct any transaction “of an amount equal to or exceeding rupees fifty thousand, whether conducted as a single transaction or several transactions that appear to be connected, or any international money transfer operations”.
Linking Aadhaar with Bank account will curb the black money menace for ever. This facilities is also applicable to all PMJDY or BCSBD accounts. These are the small accounts, which can be opened without having officially valid KYC documents, by saying that such accounts can only be opened only at bank branches that have core banking solution.
Such small accounts are prohibited from larger transaction more than Rs one lacs in year and any type of foreign remittance.