Aadhaar mandatory for opening bank A/c, transaction over Rs50K

Agencies
June 16, 2017

New Delhi, Jun 16: The government has made quoting of biometric identity number Aadhaar mandatory for opening of bank accounts as well as for any financial transaction of Rs 50,000 and above.

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Existing bank account holders have been asked to furnish the Aadhaar number issued by the Unique Identification Authority of India (UIDAI) by December 31, 2017, failing which the account will cease to be operational, according to a revenue department notification.

The government in Budget 2017 has already mandated seeding of 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.

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.

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.

The amendment makes it mandatory for individuals, companies and partnership firms to quote Aadhaar along with PAN or Form 60 for all financial transactions of Rs 50,000 or above with effect from June 1.

Post June 1 if a person does not have an Aadhaar number at the time of opening of account, then he has to furnish proof of application of enrolment for Aadhaar and submit the Aadhaar number to the bank within six months of opening of the bank account.

"In case the client, eligible to be enrolled for Aadhaar and obtain a PAN... does not submit the Aadhaar number or the PAN at the time of commencement of an account based relationship with a reporting entity, the client shall submit the same within a period of 6 months from the date of the commencement of the account based relationship.

"Provided that the clients... already having an account based relationship with reporting entities prior to date of this notification, the client shall submit the Aadhaar number and PAN by December 31, 2017," the notification 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.

Commenting on the development, Nangia & Co Managing Partner Rakesh Nangia said: "With the amendment, obtaining Aadhaar and PAN have gained paramount importance, since the banks are now required to report Aadhaar and PAN in respect of each of its clients' at the time of account opening and in case of existing accounts at the time of making transactions worth Rs 50,000 or more".

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 rules impose obligation on reporting entities like banks, financial institutions and intermediaries to verify identity of clients, maintain records and furnish information to Financial Intelligence Unit of India (FIU-IND).

As per Rule 9, every reporting entity shall at the time of commencement of an account-based relationship, identify its clients, verify their identity and obtain information on the purpose and intended nature of the business relationship.

In all other cases, identity should be verified while carrying out transaction of an amount equal to or exceeding Rs 50,000, and in any international money transfer operation.

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News Network
April 11,2024

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Udupi: A middle aged couple lost their lives while their teenage son survived with critical wounds after a speeding car, which was travelling from Maharashtra to Kerala, fell off a flyover in Kundapur taluk of Udupi district. 

The deceased have been identified as Munnavar (49), who was driving the car, and his wife Sameera (41), a native of Kannur in Kerala. Their son Suhail (18), who was in the car, suffered severe injured and is recovering at Manipal Hospital. He is said to be out of danger.

The family was traveling from Kollapur to Kannur as Sameera was a native of Kannur. Their plan was to celebrate Eid-ul-Fitr in Sameera’s parental home.  

However, on Tuesday (April 9) morning, when the car reached near Bobbaryanakatte, it reportedly went out of control of the driver and fell off the flyover on to the service road.

All three were immediately rushed to the hospital in Kundapur. Sameera died immediately upon admission to the hospital, while Munnavar succumbed to injuries at Manipal Hospital on April 10. The mortal remains of both were handed over to relatives after the post-mortem.

Kundapur DySp Belliyappa, Circle Inspector Nada Kunar, Traffic SIs Naveen Naik, and Savitri Nayak visited the accident spot for the inspection.

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News Network
April 23,2024

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Hubballi, Apr 23: Karnataka Chief Minister Siddaramaiah on Tuesday spoke to father of slain student Neha Hiremath over phone and said "sorry" over his daughter's killing, and assured that "we will be on your side".

The Chief Minister also informed Niranjan Hiremath, who is also a Congress councillor of Hubballi-Dharwad Municipal Corporation, about the government's decision to hand over the murder case to the Criminal Investigation Department (CID) and setting up a special court to fast-track trial.

"Niranjan... very sorry. We will be on your side," Siddaramaiah told Hiremath over the phone call during state's Law and Parliamentary Affairs Minister H K Patil's visit to Hiremath's house here.

In the conversation on Patil's phone with speakers on, Siddaramaiah can be heard informing Hiremath about the CID probe and setting up a special court.

"It is a serious offence... setting up a special court will ensure punishment for the accused person."

Hiremath thanked Siddaramaiah on behalf of his family well-wishers and the community for handing over the case to CID and setting up a special court "...ensure there is an order at the earliest and provide us justice," he said, as he also thanked Patil, Home Minister G Parameshwara, local Congress MLA Prasad Abbayya and others for their support.

Replying to this, Siddaramaiah said, "We will ensure it, at the earliest."

In a shocking incident, Neha Hiremath (23), was stabbed to death on the campus of BVB College last Thursday. The accused Fayaz Khondunaik, who fled from the scene, was arrested by the police subsequently.

Neha was a first year Master of Computer Application (MCA) student and Fayaz was earlier her classmate.

Siddaramaih on Monday had announced his government has decided to hand over the investigation into the incident to the Crime Investigation Department, and to set up a special court for speedy disposal of the case.

The case of brutal murder, which sparked widespread outrage, has snowballed into a political slugfest between ruling Congress and opposition BJP.

While the ruling party has tried to project it as an incident with personal angle, the saffron party has called it a "love jihad" case and has said it's a testimony of deterioration of law and order in the state.

Earlier, Siddarmaiah's statement that the murder was due to "personal reasons" and Home Minister G Parameshwara's comments that the duo was in love, has elicited sharp reactions from Hiremath and family members and opposition parties.

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News Network
April 23,2024

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The Karnataka government's decision to categorise the entire Muslim community as a backward caste for reservation purposes in the state has drawn criticism from the National Commission for Backward Classes (NCBC), which said such blanket categorisation undermines the principles of social justice.

According to the data submitted by the Karnataka Backward Classes Welfare Department, all castes and communities within the Muslim religion have been enlisted as socially and educationally backward classes under Category IIB in the State List of Backward Classes.

The NCBC, during a field visit last year, examined the state's reservation policy for OBCs in educational institutions and government jobs.

"All castes/communities of Muslim religion of Karnataka are being treated as socially and educationally backward classes of citizens and listed as Muslim Caste separately under Category IIB in the State List of Backward Classes for providing them reservation in admission into educational institutions and in appointments to posts and vacancies in the services of the State for the purpose of Articles 15(4) and 16(4) of the Constitution of India," the NCBC said in a statement on Monday night.

This categorisation has led to the provision of reservation benefits for 17 socially and educationally backward castes under Category I and 19 castes under Category II-A, respectively.

The NCBC said the blanket categorisation of Muslims as a backward caste undermines the principles of social justice, particularly for the marginalised Muslim castes and communities identified as socially and educationally backward.

However, the NCBC emphasised that while there are indeed underprivileged and historically marginalised sections within the Muslim community, treating the entire religion as backward overlooks the diversity and complexities within Muslim society.

"The religion-based reservation affects and works against ethics of social justice for categorically downtrodden Muslim castes/communities and identified socially and educationally backward Muslim castes/communities under Category-I (17 Muslim castes) and Category II-A (19 Muslim castes) of State List of Backward Classes. Hence, socially and educationally backward castes/communities cannot be treated at par with an entire religion," the NCBC stated.

The NCBC also voiced concern over the impact of such reservations on the overall framework of social justice, particularly in the context of local body polls.

While Karnataka provides 32 per cent reservation to backward classes in local body elections, including Muslims, the Commission stressed the need for a nuanced approach that accounts for the diversity within these communities.

According to the 2011 Census, Muslims constitute 12.92 per cent of the population in Karnataka.

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