The Reserve Bank of India has made Aadhaar and PAN Card mandatory to open a new bank account as per KYC guidelines. It had also declared that PAN Card must be linked to all existing accounts.
To answer the question in this context, yes PAN Card is necessary for a bank account. What would you do if you don’t have a PAN card? How can you apply for a PAN card? Read on to find answers to these questions.
What to Do If You Don’t Have a PAN Card?
Form No 60 is a form that is used for self-declaration by the users that they do not have a PAN card. This can be used as a substitute for PAN card. It can be downloaded from the website of the affiliated banks or the post offices.
A person who does not have an Aadhaar card or a PAN card will be allowed to open a small account. By small account, we mean that there will be restrictions on the number of transactions you make in a year and in a month. For such an account, a self-attested photograph will be required along with all biometrics required for e-KYC verification.
If you have Form No 60, you can do transactions in cash or even deposit or withdraw money.
But, whatever be the case is, it is always advisable to get a PAN card.
How to Get PAN Card?
You can get a PAN card by filling in a new pan card form available online on either the portal of NSDL and UTITSL. It is now even enabled with a digital signature or Aadhaar e-signature. After this, you will need to upload your photograph and proof of Aadhaar card. The fees for the process is INR 100 for a person residing in India and INR 1020 for a person residing abroad.
Mismatching Address in PAN Card
If the Aadhaar or the PAN card does not match the current address of the person, alternate documents like tax receipts and utility bills will be used. However, the trick is that the customer should submit the officially valid documents and the Aadhaar with an updated current address within 3 months of submission of documents. If the person fails to present the Aadhaar and the PAN card within 6 months of activation of the account, his/her account will cease to be operational thereafter.
Opening Bank Accounts Using E-KYC Authentication
Most banks now enable the quick opening of new bank accounts using Aadhaar OTP method by E-KYC authentication. Again, if the biometrics are not completed within one year of creating the account, it will be closed immediately.
The KYC norms were made stricter after demonetization to trace the black money involved in the banking systems. In support of this initiative, the RBI had put restrictions on all transactions through that account. This rule was applicable to all accounts having a balance of INR 5 lakh or above and if the total deposit made after 9 November 2016 is more than 2 lakh.
Besides linking all the financial transactions, PAN is also used for the regular updating of the bank accounts, which is very essential to be done once in every two years. The RBI (Reserve Bank of India) ensures that the information taken by the customer for opening a new account will be confidential in the databases without being misused for any other purposes.
From whatever point of view you may see it, PAN card is a necessary document being a citizen of India and you should make every effort in order to get it. It is for the good of the citizens and the government is only helping us out by making our lives more seamless and organized in a certain way.