The government has extended the deadline till 31 of March next year for submission of Aadhaar number, and Permanent Account Number or Form 60 by the client for certain financial transactions like opening of a bank account.
It has amended rules requiring mandatory quoting of Aadhaar and PAN.
A new rule modifying the Prevention of Money Laundering Act (PMLA) 2002 has been notified to replace the requirement of submitting the Aadhaar number and Permanent Account Number by 31st December, 2017 with the Aadhaar number, and Permanent Account Number or Form No. 60 by the due date.
On 7th of this month, the deadline for linking PAN with Aadhaar was extended by three months to 31st of March next year.
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 50 thousand rupees 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 till the time the Aadhaar number and Permanent Account Number is submitted by the client.
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.