Aadhaar

Aadhaar made mandatory for opening new accounts

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The central government has made Aadhaar card mandatory for opening new accounts and even directed people to link it with bank accounts by December 31.

Furthermore, Adhaar has also been made mandatory for financial transactions of Rs 50,000 and above.

Lately, most banks are encouraging account holders through various official communications like SMS and phone calls, to link their Aadhaar with their bank accounts.

These steps were initiated probably to pre-empt the possibility of Aadhaar becoming compulsory in future.

The government has made this mandatory is its efforts to promote digital transactions by promoting Aadhaar-enabled transactions without the use of debit and credit card.

Aadhaar is a 12-digit number code, issued by the Unique Identification Authority of India (UIDAI). It is used to establish a person’s identity on the basis of demographic and biometric information.

Earlier this month, Supreme Court had put a partial stay Section 139AA of IT Act, that allows mandatory linking of Aadhaar for filing income tax returns (ITR) and allotment of PAN (permanent account number).

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