New Delhi, Dec 13: The government has withdrawn the December 31 deadline for mandatory quoting of Aadhaar and PAN for financial transactions like opening of a bank account. The deadline was withdrawn through a Gazette notification issued Tuesday. The new deadlines will be intimated later.
The new rule notified in the Gazette modifies the Prevention of Money Laundering Act of 2002 to replace the requirement of submitting “Aadhaar number and Permanent Account Number by December 31, 2017” with a provision saying “submit Aadhaar number and Permanent Account Number or Form No: 60 by such date as may be notified by the Central Government”.
While the 12-digit Aadhaar is issued by the Unique Identification Authority of India (UIDAI), PAN is allotted by the Income Tax Department. Form 60 is a declaration filed by an individual or a person (not being a company or firm) who does not have a PAN and does certain specified transactions.
Tuesday’s notification by the Department of Revenue under the finance ministry effectively paves the way for extending the deadline for mandatory quoting of Aadhaar for activities like opening 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 the 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 banks and financial institutions have to obtain Aadhaar, PAN and other documents from anyone opening a bank account or engages in any financial transaction valued at Rs 50,000 and above.
The notification issued Tuesday stated that accounts where Aadhaar and PAN are not furnished by the date notified by the government will cease to be operational.
If any bank account holder “fails to submit Aadhaar and PAN by the date notified by the Centre, his/her account shall cease to be operational till Aadhaar and PAN are submitted “, 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).
As per Rule 9, every reporting entity shall at the time of commencement of an account identify its clients, verify identity and obtain information on the purpose and intended nature of the business relationship.
Intermediaries like stockbroker, chit fund company, cooperative bank, housing finance institution and non-banking finance companies are also classified as reporting entities.
The broad rule also applies to all cash dealings 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 reporting rules.
The notification issued Tuesday said amendments are being made in Rule 9 of the Prevention of Money-laundering (Maintenance of Records) Rules, 2005. (PTI)