In an another important move to curb black money and money laundering activities, the Government of India has made it mandatory to produce Aadhaar number to open bank accounts. All the existing and new account holders must update their accounts with Aadhaar numbers. Seeding Aadhaar with bank accounts is a must now following the mandate of Budget 2017 which also called for seeding Aadhaar with PAN.
Following are some more important points to be remembered as per the Government of India orders:
1) Aadhaar number should be produced for bank transactions of Rs. 50,000 or more.
2) It is mandatory to provide Aadhaar number to open a bank account and to conduct a transaction of Rs. 50,000 or more.
3) All existing account holders asked to submit Aadhaar to banks by December 31, 2017 failing which accounts will become invalid.
4) In case a person / account holder does not have an Aadhaar card, he has to furnish proof of his Aadhaar application.
5) Small accounts without valid KYC documents will be allowed to a maximum deposit of Rs. 50000 and can be opened only at core business branches. No foreign remittances will be accepted to such accounts and balance will be closely monitored.