Aadhaar Must For Opening Bank Accounts and high value transactions - FINMIN Notification

Aadhaar Must For Opening Bank Accounts and  high value transactions - FINMIN Notification. Existing bank account holders have been asked to furnish their Aadhaar numbers by December 31, 2017, failing which such accounts will cease to operate, according to a Revenue Department notification. 

aadhaar-must-for-opening-bank-accounts-paramnews-FINMIN-notification

NEW DELHI: The Central Government has made quoting of Aadhaar mandatory for opening of bank accounts as well as conducting any financial transactions of Rs 50,000 and above. 

Further, existing bank account holders have been asked to furnish their Aadhaar numbers by December 31, 2017, failing which such accounts will cease to operate, according to a Revenue Department notification. 

While the income tax department had earlier announced the decision to make Aadhaar mandatory for banking and financial purposes, the new regulations were notified through amendments to rules related to maintenance of records under the Prevention of Money Laundering Act.

The notification, issued by amending the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, mandates quoting of Aadhaar, along with PAN or Form 60, by individuals, companies and partnership firms, for all financial transactions of ₹50,000 or above, with effect from June 1. Moreover, small accounts that do not require officially valid “Know Your Customer” documents can be opened only at bank branches that have core banking solutions. 

It may be noted that the Supreme Court had recently upheld the constitutional validity of Section 139AA of the Income Tax Act, 1961, which stipulates that every person, which stipulates that every person, who is eligible to obtain Aadhaar number shall, on or after the 1st day of July, 2017, quote Aadhaar number in the application form for allotment of permanent account number and in the return of income. 

The Court had however, partially stayed the operation of the Section subject to the outcome of the Constitution Bench Judgment in the main Aadhaar Case in which the very validity of Aadhaar is challenged. The Bench had also clarified that those who don’t have Aadhaar need not apply for it for the purpose of filing IT returns.

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