Kumari Palany & Co

No. of views : (1930)

Aadhar and PAN details are mandatory for bank accounts

Posted on: 24/Apr/2018 12:41:42 PM
The latest instruction from the Reserve Bank of India clearly states the mandatory requirements for opening new accounts and for maintaining the existing bank accounts. PAN and Aadhar fields are made as compulsory entries to have accounts in the banks supervises under Reserve Bank of India (RBI).

Know-Your-Customer (KYC) regulations were on a debate among public and judicial bodies of the country about disclosing the personal details of the Citizens. Now the official announcement of RBI confirmed the PAN and Aadhar as mandatory.

Multiple petitions are filed against the Aadhar requirement KYC verification for bank accounts and other essential operations that was instructed from the BJP government. Most of the appeals reminds the misuse of peoples identification and disclosure of the details are enacted by the government itself making the chaos among opposition groups and also in public handling the complex frustrating new process of Aadhar verification.

People from uneducated and rural background faces many technical issues in maintaining their pension funds and bank accounts as a result of multiple shock schemes like KYC verification, Demonetization and so on.

Prevention of Money Laundering (PML) was told as a criteria for such KYC verification and in spite of all oppositions the process of making it a nationwide eligibility for having a bank account is in progress.

The recent update says that the absence of Permanent Account Number (PAN) and Aadhar details even after the deadline will lead to freeze of the existing accounts and the operations with the accounts will be ceased.

Biometric based e-KYC Authentication should be completed within one year or else the accounts will be closed immediately. RBI instructed the banks not to disclose any details of the Customers for any kind of promotional marketing attempts from any business organizations. Confidentiality will be assured for the public in any case and the process of finalizing the decisions with Indian Banks` Association (IBA) is in the final phase before the action.