Aadhaar Seeding with Bank Accounts

Aadhaar seeding with bank accounts

As per notifications dated 1.6.2017 and 13.12.2017 by Department of Revenue, amendments have been effected to the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 to provide that account-holders eligible to be enrolled for Aadhaar, shall inter alia submit their Aadhaar number to banks, by 31.3.2018 or six months from the date of commencement of account-based relationship by the account-holder whichever is later, for the purpose of Client Due Diligence.

Department of Revenue (DoR) has informed that the objectives of Aadhaar seeding with bank accounts is to weed out bogus, fictitious and benami accounts used for money laundering, terror funding or avoiding taxes and to ensure reduction in leakages of Government spending. For the beneficiaries, Aadhaar has emerged as powerful instrument to establish their identity anywhere at any time, receive entitlements and exercise their rights.

The said rules further provide inter alia that an individual eligible to be enrolled for an Aadhaar number shall, at the time of commencement of an account based relationship, submit the Aadhaar number and, where Aadhaar number has not been assigned, furnish proof of enrolment for Aadhaar.

This was stated by Shri Shiv Pratap Shukla, Minister of State for Finance in written reply to a question in Lok Sabha today.

PIB