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New Delhi, In a major drive against “money laundering and tax evasion through multiple bank accounts”, the Centre today made quoting of the Aadhaar number mandatory for opening a bank account as well as for any financial transaction of Rs 50,000 and above. The existing accounts would also have to be linked to Aadhaar by December 31, failing which the account would cease to be operational.
The notification amending the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005, mandates quoting of the Aadhaar number along with PAN or Form 60 by individuals, companies and partnership firms for all financial transactions of Rs 50,000 or above.
The Union Budget for 2017 had already put in place mandatory linking of Aadhaar number with Permanent Account Number (PAN) to avoid individuals using multiple PANs to evade taxes.
Plugging the leaks in opening of small bank accounts, which can be done without having officially valid KYC documents, the amendment said such accounts that can have a maximum deposit of Rs 50,000 could be opened only at bank branches with core-banking solution.
It could also be opened at a branch where it is possible to manually monitor and ensure that foreign remittance is not credited and stipulated limits on the monthly and annual aggregate of transactions and balance are not breached.
Such small bank accounts shall be operational for 12 months and thereafter for a similar period if the holder shows the application for valid identification papers.
