Aadhaar linkage to banks is not mandatory

Certain private banks have frozen accounts of customers and when asked why, say it is because the Aadhaar linkage is missing.

Under the Prevention of Money Laundering Act, 2002 (PMLA) guidelines, banks are not supposed to insist on Aadhaar cards when opening a fresh account; customers can take up to six months to provide an Aadhaar number.Anivar Aravind, a volunteer with the Anti-Aadhaar Campaign, who has filed a case against HDFC Bank in Bengalu-ru for insisting on Aadhaar while opening a fresh account, said, “Banks should open acc-ounts without the identification number. The PMLA guidelines under section 17 clearly states that customers should be given six months time to submit Aadhaar number, but all the banks are violating this norm.”

When this newspaper took up this issue with a member of the private banks association, he admitted that Aadhaar counters are established in bank premises and “a target to enrol Aadhaar with fresh bank accounts has been set for staffers by charging a nominal fee of Rs 15. However, it is illegal to block accounts and demand Aadhaar. If banks continue this practice they may lose business.”

If the bank demands your Aadhaar, a customer can legally proceed against the bank.Vivek Reddy, a city-based lawyer dealing with Cons-titutional cases, explained, “The Supreme Court has reserved its judgment on making Aadhaar mandatory, even for bank accounts. The case is likely to come up in July. This apart, for quick redressal, customers can write to the bank ombudsman or supervision cell or RBI. Otherwise, one can file a PIL in the High Court and proceed legally against the bank. The Aadhaar linkage to banks is not mandatory; it is a violation of the fundamental rights of the consumer.”