Linking your bank account with Aadhaar is mandatory, here's what happens if you don't

Turns out you have to link your bank account with Aadhaar after all. The Reserve Bank of India on Saturday stepped in to strike down news reports that claimed, quoting an RTI reply, it was not necessary to link the 12-digit biometric identification number with bank accounts, saying the directive remained in force under anti-money laundering rules. 

So, the December 31 deadline stays put for now. "The Reserve Bank clarifies that, in applicable cases, linkage of Aadhaar number to bank account is mandatory under the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017 published in the Official Gazette on June 1, 2017," the central bank said a notification. 

Earlier this year, the government had made it mandatory to link bank accounts with Aadhaar. Accounts that are not linked will cease to become operational, it said. 

To comply with the finance ministry directive, banks have already started asking for Aadhaar while opening new accounts and have been giving constant reminders to those who still haven't linked their accounts with the number. 

So considering that the rule to make Aadhaar mandatory for opening new accounts has already been enforced by banks, it would appear that as per current situation, existing account holders will not be given an exemption. Hence, if the government has its way, bank accounts not linked to Aadhaar will cease to become operational. Blocking of one's savings account will obviously lead to huge inconvenience and may well put a stop to your financial life. You don't want to stuck in a situation where your salary is not getting credited to your bank account, you cannot withdraw cash at ATMs, or even swipe your card. 

So make sure you seed your bank account with Aadhaar before the December 31 deadline. 

What happens if I don't and my account gets cancelled? 

Well, you can re-activate your account by submitting the required documents and linking it with Aadhaar. According to the finance ministry directive, "Provided that in case client already having an account based relationship with reporting entities prior to date of this notification fails to submit the Aadhaar number and Permanent Account Number by 31st December, 2017, the said account shall cease to be operational till the time the Aadhaar number and Permanent Account Number is submitted by the client." However, there is no mention on how long it will take to retrieve your bank account once it becomes inoperable. 

Here's a step-by-step guide to check whether your Aadhaar has been linked with your bank account. 

1. Visit the Aadhaar website - www.uidai.gov.in 

2. Click on 'Check Aadhaar & Bank Account Linking Status' 

3. Enter your Aadhaar number and security code. Once submitted, an OTP will be sent to your mobile number registered in the Aadhaar database. 

4. Enter the OTP and click on 'Login' 

5. On successful login, the website shows whether your Aadhaar number is successfully mapped or not. 

You can also check using your mobile phone. 

1. Dial *99*99*1# 2. 

Enter your 12 digit Aadhaar number 

3. Confirm that the digits entered by you is correct 

4. On confirmation, it will show you the bank account linked with Aadhaar 

Points to remember 

1. It will only show you the last bank account that has been linked with your Aadhaar. 

2. If you have multiple bank accounts, you will have to check the status of the same with the bank. 

3. You will be able to use this service only if your mobile number is linked to your Aadhaar. 

Exemption has been given only to small accounts 

Not all types of bank accounts will become un-operational if they are not linked with Aadhaar before the deadline. Small accounts are exempt from this directive as these can be opened even without Aadhaar. 

Source:-The Economic Times