Aadhaar bank account linking: Now, after some news reports went viral claiming that ‘Aadhaar number linkage with bank accounts is not mandatory’, the Reserve Bank of India has released an official statement,

A number of people are still confused about whether the linking of Aadhaar number with bank account is mandatory or not. (Photo from RBI Twitter and PTI)

A number of people are still confused whether the linking of Aadhaar number with bank account is mandatory or not. Now, after some news reports went viral claiming that ‘Aadhaar number linkage with bank accounts is not mandatory’, the Reserve Bank of India has released an official statement on the Aadhaar number-bank a/c linking matter. The RBI has clearly said that linking Aadhaar to bank accounts is mandatory. Yes, it is mandatory! Issuing a clarification RBI said, “Some news items have appeared in a section of the media quoting a reply to a Right to Information Act application that Aadhaar number linkage with bank accounts is not mandatory.” “The Reserve Bank clarifies that, in applicable cases, linkage of Aadhaar number to bank account is mandatory under the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017 published in the Official Gazette on June 1, 2017,” the RBI said in the statement.

“These Rules have statutory force and, as such, banks have to implement them without awaiting further instructions,” the RBI added in the statement.

The big development came after some reports in media claimed that ‘Aadhaar number linkage with bank accounts is not mandatory’.

Earlier, the existing bank account holders have been asked to furnish the Aadhaar number issued by the Unique Identification Authority of India (UIDAI) by December 31, 2017, failing which the account will cease to be operational, according to a revenue department notification. Also, the government had made quoting of biometric identity number Aadhaar mandatory for opening of bank accounts as well as for any financial transaction of Rs 50,000 and above. Also

The government in Budget 2017 had already mandated seeding of Aadhaar number with Permanent Account Number to avoid individuals using multiple PANs to evade taxes.

The notification issued amending the Prevention of Money- laundering (Maintenance of Records) Rules, 2005, 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.

Tightening the rules for small accounts, which can be opened without having officially valid KYC documents, the amendment said such accounts – which can have maximum deposit of Rs 50,000, can be opened only at bank branches which have core banking solution.

FULL TEXT of the statement released by RBI:-

“RBI clarifies that linking Aadhaar to bank accounts is mandatory

Some news items have appeared in a section of the media quoting a reply to a Right to Information Act application that Aadhaar number linkage with bank accounts is not mandatory.

The Reserve Bank clarifies that, in applicable cases, linkage of Aadhaar number to bank account is mandatory under the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017 published in the Official Gazette on June 1, 2017.

These Rules have statutory force and, as such, banks have to implement them without awaiting further instructions.

Source : http://www.financialexpress.com/economy/confused-about-linking-your-aadhaar-number-with-bank-account-is-it-mandatory-or-not-here-is-truth-and-full-text-of-rbi-statement/901116/