Deadline to link Aadhaar with bank account extended

Moneylife Digital Team 13 December 2017

The Union Government in a modified Gazette notification has extended the deadline to link Aadhaar number with bank account to 31 March 2018 as mandated under the Prevention of Money Laundering Act (PMLA). This means, bank customers, who have not linked their Aadhaar number can get reprieve from non-stop messages from banks for few more months. Earlier, the government has mandated all individual bank customers to link Aadhaar number with their bank accounts and also submit either permanent account number (PAN) or form60, in case there is no PAN before 31 December 2017.

The Gazette notification issued to amend two sub-rules (17) under rule 9, on 12 December 2017, the Government says, “…submit the Aadhaar number, and Permanent Account Number or Form No60, by such date as may be notified by the Central Government".

Here is what the Gazette Notification says…

“The Central Government in consultation with the Reserve Bank of India hereby makes the following rules further to amend the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, namely:—

1. (1) These rules may be called the Prevention of Money-laundering (Maintenance of Records) Seventh Amendment Rules, 2017.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, in rule 9,—

(a) in sub-rule (17),—

(i) in the proviso to clause (a), for the words, figures and letters “submit the Aadhaar number and Permanent Account Number by 31st December, 2017”, the following words, letters and figures shall be substituted, namely:—

“submit the Aadhaar number, and Permanent Account Number or Form No. 60, by such date as may be notified by the Central Government”;

(ii) for the proviso to clause (c), the following proviso shall be substituted, namely:—

“Provided that in case the client already having an account based relationship with reporting entities prior to the date of publication of this notification in the official Gazette fails to submit the Aadhaar number and Permanent Account Number by such date as may be notified by the Central Government, the said account shall cease to be operational till the time the Aadhaar Number and Permanent Account Number is submitted by the client”.”

However, next day, the Ministry of Finance, issued another Gazette Notification fixing the date as 31 March 2018. Here is what the new notification says...

G.S.R. 1509(E).

—In pursuance of clause (a) and clause (c) of sub-rule (17) of rule 9 of the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, the Central Government hereby notifies the 31st March, 2018 or six months from the date of commencement of account based relationship by the client, whichever is later, as the date of submission of the Aadhaar Number, and Permanent Account Number or Form 60 by the clients to the reporting entity.[Notification No. 10/2017/F. No. P.12011/11/2016-ES Cell-DoR]

Innovator and polymath Dr Anupam Saraph, says, "As per the amendment, insofar as existing accounts, the deadline for the linking of Aadhaar with the account, has been deferred. The provision had said that the deadline will be notified by way of gazette notification. Hopefully this should be some respite for the bank and insurance holders."

"However, this amendment does not help individuals who want to open a new account. Aadhaar will still be mandatory for opening a new account,' he added.

Here is the Gazette Notification issued on 12 December 2017…

Comments

User

V.Krishnamoorthy

5 years ago

I feel the Aadhar Card link can be insisted only tothe accounts who have a dealing in overseas market or investment. Five years ago, why have they allowed liberalised remittance scheme and later increased to the present level of 2.5las US dollors. For the past one year they cry wolf and bring out as many circulars and clarifications as the stars in the sky. In this drama, they have branded all citizens as black money dealers.

Pratap Kumar N

5 years ago

THIS IS A DRAMA ENACTED BY CENTRAL GOVERNMENT TO ESCAPE FROM THE INTERIM ORDERS TO BE ISSUED BY THE CONSTITUTION BENCH OF THE SUPREME COURT HEARING ON AADHAR CASE FROM 14.12.2017 AND ESCAPE THE STAY ORDERS, THAT MEANS CENTRAL GOVERNMENT CAN REINTRODUCE THE LINKING OF AADHAR WITH BANK ACCOUNTS IN NEAR FUTURE IF THERE IS NO INTERIUM ORDERS FROM SUPREME COURT

Y R DESAI

Replied to Pratap Kumar N comment 5 years ago

Thanks God. One forced to spend hours of his life on complying at different places with different requirement. Achievements ???

Ramesh Poapt

5 years ago

whether it is applicable to mutual fund and insurance co.s?
I think for them, deadline is still 31st Dec.17. Will moneylife clarify please?

Sudhakar Ojha

5 years ago

Will someone inform the Banks and Mutual Funds and Insurance Companies ?