New Delhi: The Narendra Modi government has made it mandatory to give biometric identity number Aadhaar while opening a new account and also to link the existing accounts with the Aadhaar numbers of their holders. Not disclosing it by December 31 will lead to suspension of the account till it is done.
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, according to PTI.
It can also be opened at a branch where it is possible to manually monitor and ensure that foreign remittance are not credited to such account and stipulated limits on monthly and annual aggregate of transactions and balance are not breached, the amended PMLA rules said.
Such small account shall remain operational initially for a period of 12 months and thereafter for a similar period if the account holder provides evidence that he or she has applied for officially valid identification documents.
"The small account shall be monitored and when there is a suspicion of money laundering or financing of terrorism or other high risk scenarios, the identity of claim shall be established through the production of official valid documents," it said.
So far, as per the PMLA Rules it is mandatory to provide PAN number or Form 60 to banks while opening of accounts or for high value transactions.
For companies opening bank accounts, Aadhaar number of managers, or employees holding an attorney to transact on the company's behalf will have to be provided.
Earlier in Budget 2017 the government had made it compulsory to link 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.