Aadhaar number linking to Bank Account mandatory, clarifies RBI

Gladys Abbott
October 22, 2017

These rules have statutory force and, as such, banks have to implement them without waiting for further instructions. Terming the mandatory linkage of bank accounts with Aadhaar as an arbitrary amendment to the KYC requirement, the petitioner said, "Building a database dependent on Aadhaar and information linked there constitutes an unreasonable risk for financial autonomy and privacy of account holders, banks and financial sovereignty of the nation".

Banks have of late been flooding their customers with emails and SMS messages, asking them to link their bank accounts with their Aadhaar number.

The Reserve Bank of India (RBI) "has not issued any instruction so far regarding mandatory liking of Aadhaar number with bank accounts, even as banks continue to remind customers of the December deadline for linking Aadhaar with their bank accounts, reveals an RTI reply. It's not the government's business to prescribe what banks and their customers should do", a customer complained. "Though the RTI reply says the RBI did not issue any such circular or notification, it issued has guidelines", he said.

The Reserve Bank of India (RBI) has recently revised the conditions on linking up the bank account with Aadhar card. The order also stated that it is compulsory to have Aadhaar and PAN in possession for attaining a bank account.

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The petition filed by activist Dr. Kalyani Menon Sen has challenged Rule 2 (b) of the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017, which states mandatory submission of Aadhaar while opening bank accounts.

Finance Minister Arun Jaitley, in Budget 2017, had mandated seeding of Aadhaar number with Permanent Account Number (PAN) to avoid individuals using multiple PANs to evade taxes.

The centre had earlier made it mandatory for more than 50 centrally-sponsored schemes.

Click on the above link and you will be navigated to another page that would ask you for your Aadhaar number.

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