Government has been encouraging people to update Aadhar Card details with their respective bank accounts for quite sometime now. But now it has made it mandatory to link all Bank accounts with Aadhar Card before 31st December, 2017. Not only that, it is also being made mandatory for opening of new bank accounts and and for all transactions above INR 50,000.
Here is all the update on this latest directive and what you should do to ensure you can continue operating your bank account normally like you have been.
Link Aadhar card to Bank Account Right Away, if you haven’t done it yet:
The notification issued on Friday, 16th June, 2017 is an amending to the Prevention of Money laundering (Maintenance of Records) Rules, 2005, which mandated quoting of Aadhaar along with PAN or Form 60 by individuals, companies and partnership firms for all financial transactions of Rs 50,000 or above.
Ever since the mandate for linking PAN with Aadhar card was issued, any experts were anticipating a mandatory linking of bank accounts with Aadhar Card as well. This was because bank accounts already have require PAN as a one of the requirements for KYC, FDs and various transactions above INR 50,000. So, once Aadhaar is linked with PAN, it will also lead to automatic link with the bank accounts as well.
Why is Aadhar Linking to Bank Account being made mandatory:
There many reasons for Government’s directive to link Aadhar Card to Bank Accounts. Primarily to check for frauds and dummy bank accounts which would minimise instances of money laundering, black money circulation and help seize such shell accounts.
Other reasons is because the government also wants to promote digital transactions by promoting Aadhaar-enabled transactions without the use of debit and credit card
How can you Link Aadhar Card to Bank Account?
There are 2 ways to achieve Aadhar Card Bank Account Linking:
- Online: Updating the Aadhaar details using net banking
- Offline: Filling the Application form and Submitting it to Bank itself
Online Process to Link Aadhar Card to Bank account
This is extremely easy method. Furthermore, it is important that you have internet banking facility activated for your account. If not, you need to contact your bank for the same.
Also, the method described below, works for almost all banks. The options may slightly vary, but the overall process is identical.
- You need to login into the internet banking account.
- Once you are logged in, you need find link that something like “Update Aadhaar Card Details” or “Aadhaar Card Seeding” or “Link your Aadhar Card”.
- Click on it to open up other page.
- You now need to enter the Aadhar card information in the respective fields.
- After entering the details verify the same again and finally hit the submit button.
- Once verified your application will be processed. Finally, you will notified via email or sms on your registered mobile number – Confirming the Aadhar Bank Account Linking.
Link Aadhar Information to Bank Account Offline:
Those you don’t have access to internet banking can easily update the details using this approach. Process is mentioned below:
- Visit your bank with your Aadhar Card in original and copy.
- Ask for Aadhar and Bank Account linking.
- Fill in the form that the bank would give you.
- You might need to enter your bank account number, address, IFSC code, etc.
- Correctly your Aadhar number when asked.
- Once you fill the application form, attach the photocopy of your Aadhar card with it.
- Now submit the application form enclosed with Aadhar to the bank official.
- He/she might want to take a look at your original Aadhar card.
- Once the details will be verified, you will be notified.
That’s it. So, if you haven’t yet linked your Aadhar Card to Bank Account do it right away, following any of the given steps above. This will ensure you do not face any inconvenience while operating your bank accounts.