New Delhi: 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 31 December.
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 31 December, 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 31 March the deadline fixed for mandatory linking of Aadhaar to avail various services and welfare schemes.
On 7 December, the deadline for linking PAN with Aadhaar was extended by three months to 31 March, 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 are not furnished by the date notified by the government will cease to be operational.
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.
Intermediaries like stockbroker, chit fund company, cooperative bank, housing finance institution and non-banking finance companies are also classified as reporting entities.
Biometric identification number Aadhaar and other official documents are required to be obtained by the reporting entities from anyone opening a bank account as well as for any financial transaction of Rs 50,000 and above.
The rule also applies to all cash dealing of more than Rs 10 lakh or its equivalent in foreign currency, cash transactions where forged or counterfeit currency notes have been used and all suspicious dealings.
All cross-border wire transfers of more than Rs 5 lakh in foreign currency and purchase and sale of immovable property valued at Rs 50 lakh or more also fall under this category, according to the reporting rules.
The notification issued yesterday said amendments are being made in Rule 9 of the Prevention of Money-laundering (Maintenance of Records) Rules, 2005.