The government recently announced that it should be mandatory to link Aadhaar numbers to all bank accounts except the small accounts. Failing of linking Aadhaar number with the bank account will lead disabling of bank accounts after December 31.
The 12-digit Aadhaar number issued by the Unique Identification Authority of India (UIDAI) is also mandatory for any financial transaction of Rs 50, 000 and above. It is also made it compulsory to link Aadhaar with PAN to avoid individuals using multiple PANs to evade taxes.
Linking an account with Aadhaar
There are two ways of linking Aaadhaar with the bank account, that is by online and offline. Most banks allow more than one way to connect the account. The customers can do it over net banking, mobile banking, ATM, SMS and also by visiting a bank branch.
Many banks like SBI and Axis Bank offers the facility to link aadhaar with bank account using ATM. For The customer needs to walk to the nearest ATM and insert your debit card in the ATM and click on Registration. Enter the PIN and click on link Aadhaar no. , after then select the account and Update. It asks for Aadhaar No.Type your Aadhaar number and re-enter to confirm it.
The customers can link their aadhaar with the bank account, using internet banking. By opening the net banking window, you will find the Aadhaar seeding link in the accounts or services section. You have to select the account number to be linked and enter the Aadhaar number, then confirm the details. If you have more than one bank account linked with a single login ID, you will need to repeat this for all accounts. After submitting it, the bank may take 4 or 5 days to verify the process.
India's largest banking network, SBI allows their customers to link Aadhaar with their bank account using SMS facility. If you are an SBI customer and your mobile number is registered with the Bank, you can opt for the SMS option. Customer needs to send SMS to 567676 in the following format UID(space)Aadhaar number(space)Account number.
Banks like HDFC Bank are also allowing the aadhaar-bank account linkage over the phone. The customer needs to give a missed call to a designated number of their banks, and you will get an IVRS call immediately. This call will direct the customers through the process.
For small accounts, it is not compulsory to submit Aadhaar number.
A small account can be opened by any individual who is above 18 years of age. Small accounts come with many restrictions such as the account cannot have more than Rs 50,000 in deposits. A small account can be converted to a regular savings account by submitting KYC documents.