Aadhaar Card is an official document issued to the general public of India, by Unique Identification Authority of India (UIDAI), on behalf of the Ministry of Electronics and Information Technology, functioning under the Government of India. Aadhaar card is issued to all eligible citizens of India. Aadhaar card is a unique 12 digit number based on your biometric, demographic and geographic information. Citizen’s photograph, full legal name, full residential address with pin code and date of birth are printed on Aadhaar card.
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SEE ALSO: 4 Lesser Known Benefits Of Aadhaar Card
The Reserve Bank of India (RBI) had mandated all banks and financial institutions to collect Aadhaar information of customers as a part of KYC. However, Supreme Court of India over ruled this mandate and declared that there is no need to mandatorily link Aadhaar to bank accounts.
Most government subsidies and benefits are directly transferred to the beneficiaries. These beneficiaries must link Aadhaar to bank accounts. This is called direct benefits transfer (DBT). To receive DBT, it is mandatory to link Aadhaar to bank accounts. If you are not eligible to receive any DBT, then there is no need of linking Aadhaar to the bank account.
SEE ALSO: mAadhaar App Download
Offline Aadhaar linking to bank accounts can be done:
Follow the below-mentioned steps to link Aadhaar to bank account by internet banking:
Below mentioned steps are to be followed to check if your bank account is linked with Aadhar or not:
1. Direct Benefit Transfer (DBT): In order to receive the Government subsidy directly into your bank account, you must link your Aadhaar to the bank account. An example of DBT is LPG subsidy under PAHAL scheme. As per the reliable sources, the Government of India has saved approximately Rs 57,000 crores by implementing DBT.
2. Jan Dhan Yojana: Opening a bank account under Jan Dhan Yojana mandatorily requires you to have Aadhaar card. Under Jan Dhan Yojana, bank account comes with a lot of benefits like zero balance account, Rupay debit card, accidental insurance and so on.
3. Monthly Pension & Provident Scheme: Linking Aadhaar card to bank account is necessary to get a pension and PF amount credited directly into your bank account.
4. Passport & other government issued documents: Having Aadhar card would ease the process of getting voter ID and passport. This is because Aadhaar card serves as a document of age proof, address proof and identity proof. This will quicken the passport obtaining process & also help eliminate bogus voters, once linked to voter IDs.
1. Risk of misuse in Banking Details/Transactions:
There is always a risk of data misuse which can happen if Aadhar information is leaked. This can cause serious problems to the people as confidential data is exposed.
2. Foreign Handling: Aadhaar database is maintained by private companies. Employees there can misuse the data by sharing it with external entities. This leads to data erosion and thereby compromising on the privacy of individuals.
3. Problems due to Centralization: Aadhaar is managed and operated by the Supreme Authority of the country. This may lead to centralization problems as the authority is free in manipulating & creating new orthodox rules, which may affect Aadhaar cardholders and the nation as a whole.
4. Information of cardholders may be compromised: Since Aadhaar card is linked to many other critical documents like PAN and passport, it is easy to manipulate and create fake documents by just knowing the Aadhaar number of an individual. Therefore it is always risky to link one document with another.
5. Uneasy to use: More than 30% of the Indian population is still illiterate. Forget smartphone, they still can’t operate a basic keypad phone. The illiterate population cannot extract the benefits of Aadhaar. Many citizens still don’t know about DBT and don’t have Aadhaar to receive it.
All Indian citizens are eligible to link Aadhaar to bank accounts. However, it is not mandatory to link Aadhaar to bank account as per the Supreme Court’s order. Individuals eligible for receiving Direct Benefits Transfer DBT, from the Government are mandated to link Aadhaar with bank accounts, failing which would result in delay in receiving subsidies and other benefits. It’s good to produce and link Aadhaar with bank accounts as it serves as a document that supports age proof, address proof and identity proof.
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