The government, through a notification amending a prevention of money laundering law, has made it mandatory to provide Aadhaar to open a bank account and to conduct a transaction of Rs. 50,000 or more.
The notification amending the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, although dated June 1, was not gazetted till Friday.
It says that that individuals who are eligible to be enrol for an Aadhaar number need to provide that number and the Permanent Account Number (PAN) to open a bank account or conduct any transaction "of an amount equal to or exceeding rupees fifty thousand, whether conducted as a single transaction or several transactions that appear to be connected, or any international money transfer operations."
The amendment also tightens the rules for small accounts, which can be opened without having officially valid KYC documents, by saying that such accounts can only be opened at bank branches that have core banking solutions.
"The small account shall be opened only at core banking solution-linked banking company branches or in a branch where it is possible to manually monitor and ensure that foreign remittances are not credited to a small account and that the stipulated limits on monthly and annual aggregate of transactions and balance in such accounts are not breached, before a transaction is allowed to take place," the notification said.