Business

Aadhar Card Linkage To Bank Accounts Is Compulsory, Clarifies RBI

AASTHA SINGAL | 0
1609
| October 21 , 2017 , 19:14 IST

Amidst all the rumours of linking Aadhar to Bank accounts being an added requirement, the Reserve Bank of India has clarified that Aadhar card linkage to each applicator's respective bank account is mandatory.

While replying to an application filed through Right to Information (RTI) which suggested that no notice signifying the linkage of the 12 digit unique-identity number has been issued by RBI, the apex bank clarified that linking Aadhar to bank accounts is indeed compulsory.

The central bank stated, "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) Second Amendment Rules, 2017 published in the Official Gazette on June 1, 2017."

ALSO READ: Follow These Steps For Updating And Linking Pan Card With Aadhar Card

Due to the statutory nature of these rules, the Banks are required to enforce them without further instructions. The government has made Aadhar card compulsory for opening new bank accounts and making a transaction above Rs 50,000 with effect from July this year.

A notification also stated that the existing bank account holder must link their respective biometric identity numbers issued by the Unique Identification Authority of India (UIDAI) before December 31, 2017. Accounts of the account holders who failed to perform the procedures in time will be ceased.

While presenting the Budget of 2017, the central government has already mandated the seeding of Aadhaar number with Permanent Account Number in order to avoid tax evasion. Supreme Court's decision of adding the fundamental right of Privacy has complicated the entire procedure for the government of India.