Decision also mandates PAN for conducting financial transactions of Rs 50,000 and above.
Modi Government has now announced its decision of making the Aadhaar card mandatory for opening of all new bank accounts.
As per the decision even conducting financial transactions of value Rs 50,000 and above will also need PAN.
Govt also mandated that existing bank account holders too have been asked to submit their Aadhaar cards issued by the Unique Identification Authority of India (UIDAI) to banks by December 31 this year.
It is provided that non compliance of this would lead to banks invalidating the accounts.
This has been done within days after the Supreme Court upheld the validity of an I-T Act provision making Aadhaar a must for allotment of PAN cards and for filing Income Tax returns.
Supreme court had granted a “partial relief” to those who do not have an Aadhaar or an Aadhaar enrolment ID.
It was ruled that the PAN of such individuals will not be cancelled for now for the reason they do not have Aadhaar Card.
According to the notification issued amending the Prevention of Money Laundering (Maintenance of Records) Rules, 2005, quoting of Aadhaar along with PAN or Form 60 by individuals, companies and partnership firms is mandatory for all financial transactions of Rs 50,000 or above with effect from June 1.
Post June 1, if a person does not have an Aadhaar number at the time of opening of account, then he has to furnish proof of application of enrollment for Aadhaar. Thereafter the Aadhaar number is to be submitted to the bank within six months of opening of the bank account.
So far, it was mandatory to provide PAN number or Form 60 to banks while opening of accounts or for high value transactions.
It is provided that 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.
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