Aadhaar and PAN: Are Aadhaar and PAN cards necessary for small savings accounts? Know these things.

Aadhaar and PAN
Aadhaar and PAN: Are Aadhaar and PAN cards necessary for small savings accounts? Know these things.

Aadhaar and PAN: Should Aadhaar be valid for opening small savings accounts like PPF, Senior Citizens Savings Schemes Accounts, Sukanya Samriddhi Yojana etc.? That question comes to many people. The Center has recently given an explanation on this matter.

Aadhaar and PAN: As per the notification recently shared by the Finance Ministry, Aadhaar is mandatory for opening small savings account. This means that citizens investing in schemes like Senior Citizen Savings Scheme (SCSS), Sukanya Samriddhi Yojana (SSY), Public Provident Fund (PPF) are now required to provide Aadhaar as identity proof.

What if I don’t have Aadhaar number?

If someone does not have an Aadhaar number, they can apply to the Unique Identification Authority of India for Aadhaar. A document showing application for Aadhaar can be used as a proof for opening a new account in any savings scheme. After getting the Aadhaar number, the Aadhaar number has to be submitted as an identity proof.

When do you need to provide Aadhaar number to open an account?

The account holder should provide the Aadhaar number to the concerned Accounts Office within six months from the date of account opening. Failing to do so, his savings account will stop functioning till he submits the Aadhaar number.

Is PAN card required for small savings accounts too?

At the time of opening a Small Amount Savings Account, eligible persons are also required to provide their Permanent Account Number (PAN card). If PAN is not submitted at the time of account opening under the following circumstances, PAN details will have to be disclosed within two months.

(1) If the balance in the account at any time exceeds fifty thousand rupees or not

(ii) if the total credits in the account in any financial year exceed one lakh rupees; Or

(3) If the amount of all withdrawals and transfers from the account in a month exceeds ten thousand rupees, PAN should be submitted.

What if PAN card is not submitted for small savings accounts?
If a person fails to submit PAN within the due date, the respective account will cease to function till the PAN card details are submitted in the Accounts Office.

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