After the government extended the date to link aadhaar to PAN by three more months to March 31, 2017, the deadline to link aadhaar with financial services and instruments is likely to be extended beyond December 31, 2017. The amendment in the Prevention of Money Laundering Rules replaces the deadline of December 31, 2017 with 'a date to be notified by the government'.
With this notification in place, the government is likely to extend the date of linking aadhaar with bank accounts, mutual funds, insurance policies, PF and other small saving schemes of the post office including NSC, KVP, PPF, Sukanya Samriddhi account, Senior Citizen Saving scheme etc. Aadhaar details are also required to be furnished in case an individual has borrowed funds from a bank, NBFC or housing finance company.
The amendment clears that if the linking of aadhaar to the individual's financial instrument is not completed by the date to be notified, the account of the concerned person will be blocked.
All customers of banks and other financial institutions are required to be fully KYC-compliant which in accordance with the new rules requires verification of an individual's aadhaar Id. The amendment to this effect has been made in the Prevention of Money Laundering Rules (Maintenance and Records), 2005.
The earlier ruling required an individual to mandatorily furnish PAN and aadhaar to be KYC-compliant and the deadline for the same stands at December 31, 2017.