Insurance sector regulator Insurance Regulatory and Development Authority of India (IRDAI) has recently said that linking Aadhaar, the unique identity number, with insurance policies is mandatory. The government in June had notified the Prevention of Money Laundering (Maintenance of Records) Second Amendment Rules, 2017 making Aaadhar and PAN/Form 60 mandatory for availing financial services, including insurance, and also for linking the existing policies with the same. The government has insisted on quoting Aadhaar for bank deposits, obtaining mobile phone and several other utilities to weed out benami deals and black money.
Here is the list of essentials with which linking of Aadhaar number is mandatory
1) Aadhaar-Mobile number (SIM) linking:
The government has made it mandatory for mobile phone subscribers to link their Aadhaar number with mobile phone number (SIM). However, from December 1, customers will not have to visit a mobile phone retailer to do the same, the government said recently. From December 1, 2017, Aadhaar card holders can link their UID or Unique Identity Number with SIM from the comfort of their home through an OTP (One-Time Pin) received on the mobile number registered with Aadhaar, according to the UIDAI. "No need to give finger prints to local SIM card retailer for your mobile phone verification," the UIDAI noted.
February 6, 2018 is the last day to link Aadhaar with mobile SIM.
Linking of Aadhaar with PAN is inevitable. In case, one has filed his income tax returns without linking the two, his returns will not be processed. Over 13.28 crore PANs have been linked with Aadhaar till as of November 6, 2017, news agency Press Trust of India reported citing official sources.
2) Aadhaar-PAN linking:
The Supreme Court had in June upheld the validity of an Income Tax Act provision making Aadhaar mandatory for allotment of PAN cards and ITR filing, but had put a partial stay on its implementation till a Constitution bench addressed the issue of right to privacy.
The Central Board of Direct Taxes had in June this year said the apex court's order had only given a "partial relief" to those who did not have an Aadhaar or an Aadhaar enrolment ID, and the taxman, hence, "will not cancel" the PAN of such individuals.
The last day for Aadhaar-PAN linking is December 31, 2017.
Those already holding bank accounts are required to furnish the Aadhaar number by December 31, 2017, failing which the account will cease to be operational, according to a notification from the revenue department.
3) Aadhaar-bank accounts/financial services linking:
Prevention of Money Laundering Act regulations have mandated that everyone must link their Aadhaar number to their mutual funds profile also.
For opening a post office account or investing in small savings schemes such as NSC, PPF and Kisan Vikas Patra, Aadhaar is a must. While Aadhaar holders are required to mandatorily produce the Aadhaar, those not having an Aadhaar card or Aadhaar number as yet can quote the EID or enrolment identity number of their Aadhaar application, the government has said.
4) Aadhaar-PPF, NSC linking
Existing depositors can update their Aadhaar number till December 31, 2017, according to a notification issued by the finance ministry.