Government of India, Ministry of finance has made it mandatory for all existing customer or new customer of any bank in India to obtain the PAN card and Aadhaar Number compulsory for account opening and in case of existing accounts at the time of making transactions worth Rs 50,000 or more.
This rule automatically override the existing practices of collecting Form 60/61. Now onward all the accounts required PAN number and Aadhaar number mandatory for opening new accounts and compulsory for any transaction above Rs 50,000. 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.
It is required to existing customer of any bank to submit the Aadhaar number and PAN by December 31, 2017.
Rules for Companies or Current Account Holder
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.
In order to curb the black money information, 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.
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.