Aadhaar-PAN linking deadline relaxed for 'certain' financial dealings: Govt
Posted: Dec 13, 2017
The government has amended rules requiring mandatory quoting of national biometric identifier Aadhaar and PAN for certain financial transactions like opening of a bank account by keeping the deadline open-ended in place of the current December 31.
A new rule modifying the Prevention of Money Laundering Act of 2002 has been notified to replace the requirement of submitting "the Aadhaar number and Permanent Account Number by December 31, 2017" with "submit the Aadhaar number, and Permanent Account Number or Form No. 60, by such date as may be notified by the Central Government".
The notification by the Department of Revenue in the finance ministry effectively paves the way for extending the deadline for mandatory quoting of Aadhaar for activities like the opening of a bank account.
This is in line with the Centre last week informing the Supreme Court that it is willing to extend till March 31 the deadline fixed for mandatory linking of Aadhaar to avail various services and welfare schemes.
On December 7, the deadline for linking PAN with Aadhaar was extended by three months to March 31, 2018.
Under the PMLA, Aadhaar, PAN and other official documents are required to be obtained by banks and financial institutions from anyone opening a bank account as well as for any financial transaction of Rs 50,000 and above.
The notification issued yesterday stated that accounts where Aadhaar and PAN Linking are not furnished by the date notified by the government will cease to be operational.
If the account holder "fails to submit the Aadhaar number and PAN 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", it said.
The Prevention of Money Laundering Act (PMLA) forms the core of the legal framework put in place by India to combat money laundering and generation of black money.
The PMLA and its rules impose an obligation on reporting entities like banks, financial institutions and intermediaries to verify the identity of clients, maintain records and furnish information to the Financial Intelligence Unit of India (FIU-IND).
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