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.

aadharmoney

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.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
March 21,2024

visa.jpg

Mangaluru: A man from Dakshina Kannada was duped of Rs 2.5 lakh after he was promised a Poland visa.

In a complaint, a resident of Belthangady, stated that the accused, Manoj, had promised a job for his son in Poland. 

Between May 22 of last year and March 19, he handed over Rs 2.2 lakh in various phases, citing different reasons.

However, since the accused failed to provide a visa or return the money, a case was registered at the Dharmasthala police station under IPC sections 417 and 420.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
March 25,2024

reddymining.jpg

Bengaluru, Mar 25: Former Karnataka Minister and mining baron G Janardhana Reddy on Monday rejoined the BJP ahead of the 2024 Lok Sabha polls.

The Gangavati MLA, who is an accused in an illegal mining case, had formed the 'Kalyana Rajya Pragati Paksha' (KRPP) ahead of the state assembly polls last year, snapping his two-decade-old association with the BJP.

Reddy today merged his KRPP with the BJP as he, along with wife Aruna Lakshmi and some family members, joined the party in the presence of its veteran leader and former Chief Minister B S Yediyurappa, state President B Y Vijayendra, and others.

Reddy had recently met Union Home Minister Amit Shah in New Delhi.

However, in the February 27 Rajya Sabha polls he had extended support to the Congress candidate.

Calling it a "home coming", Reddy explained that the move to merge KRPP with the BJP is to "make Narendra Modi the Prime Minister a third time".

"Amit Shah had invited me to Delhi and told me that -- there is no question of extending outside support (KRPP supporting BJP in LS polls) and instead I should join the BJP and work for it, as I took my political birth in the party. Accepting it, I'm joining the party," he said.

Praising Yediyurappa and the leader's contribution in his political growth, Reddy said he is happy that he will be working in the party now with the veteran leader's son Vijayendra.

"I will work as a common party worker along with other leaders under the leadership of Vijayendra. I have not come with any conditions or expectations. Whatever responsibility the party gives me, I will honestly work.

"BJP was always there in my blood, but due to some reasons I had gone out, but today I feel I have come back to my mother's lap. Looking at my brothers here, I don't feel like I'm coming back to the BJP office after 13 years," he added.

Welcoming Reddy back into the party, Vijayendra said his joining will strengthen BJP in the Kalyana Karnataka region.

"Liking Narendra Modi's leadership and accepting BJP's ideology, Reddy has rejoined the party. Reddy has said that Karnataka should have a larger contribution in making Modi PM once again -- to ensure that BJP and JD(S) alliance win all the 28 Lok Sabha seats in the state, he is merging his KRPP with BJP and is joining the party," he said.

Before the assembly polls last year, Reddy had been largely politically inactive for nearly 12 years since his arrest by the CBI for an alleged role in a mining scam. During this period, he had a brief stint ahead of the 2018 assembly polls when he campaigned for his close friend and former Minister B Sriramulu in Molakalmuru Assembly segment.

In the run up to the 2018 assembly polls, the then BJP national president Amit Shah, in response to a reporter's question, had distanced the party from him and stressed that "the BJP has nothing to do with Janardhana Reddy." Accused in a multi-crore illegal mining case, he has been out on bail since 2015. Several conditions were imposed by the top court in its order which includes prohibiting him from visiting Ballari in Karnataka and Ananthpur and Kadapa in Andhra Pradesh.

Because of these restrictions, he had to contest the 2023 Assembly polls from Gangavati in Koppal district.

Expressing his displeasure about the way BJP had ignored him, Reddy had announced a new party last year and also took a dig at his brothers -- Karunakara Reddy and Somashekar Reddy -- and Sriramulu, as they remained with the BJP.

The three of them had unsuccessfully contested the Assembly polls, with Reddy's new party said to have impacted their performance in the election.

Sriramulu, a ST community leader and former Minister is now the BJP's candidate from the Bellary (Ballari) Lok Sabha constituency.

Reddy had played an instrumental role in strengthening the BJP in the Ballari district and is still believed to enjoy a considerable clout there as well as in adjoining districts like Chitradurga, Koppal and Raichur, which could be useful for the BJP in the Lok Sabha polls.

Reddy and his brother-in-law B V Srinivas Reddy, managing director of Obalapuram Mining Company (OMC), were arrested by the CBI on September 5, 2011.

The company is accused of changing mining lease boundary markings and indulging in illegal mining in the Ballari Reserve Forest area, spread over Ballari in Karnataka and the Anantpur district of Andhra Pradesh.

Reddy first came to political limelight during the 1999 Lok Sabha elections, when he campaigned for BJP leader, the late Sushma Swaraj, who had contested against Congress' Sonia Gandhi from Ballari.

Former Congress Minister T John's son Thomas John also joined the BJP today.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
March 27,2024

hdkprajwal.jpg

Hassan: Former Prime Minister and JD(S) supremo H.D. Deve Gowda has announced that his son, former Karnataka Chief Minister H.D. Kumaraswamy will contest from state's Mandya parliamentary seat as NDA candidate.

Deve Gowda told reporters on Tuesday that the decision to field Kumaraswamy, who is also JD(S) state president, in Lok Sabha polls from the Mandya seat was taken amid mounting public demand. "People are demanding that Kumaraswamy should contest from Mandya. In the core committee meeting as well, all members suggested that he should contest from Mandya," Deve Gowda said.

The former Chief Minister's son Nikhil Kumaraswamy had lost to independent candidate Sumalatha Ambareesh from Mandya in the 2019 Lok Sabha polls.

The JD(S) supremo further said that the name of senior leader Mallesh Babu has been finalised from the Kolar seat.

Deve Gowda's grandson and former Karnataka Minister H. D. Revanna's son sitting JD(S) MP Prajwal Revanna will be contesting as the NDA candidate from the Hassan seat.

Earlier in the day, Kumaraswamy in a media briefing indicated that he would contest from Mandya amid mounting public pressure on him.

Congress has fielded Venkatarame Gowda popularly known as ‘Star Chandru’ from the Mandya seat dominated by Vokkaligas. Star Chandru is a close associate of Deputy Chief Minister D.K. Shivakumar.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.