Why Aadhaar card linking is important for bank account? UIDAI explains

Aadhaar card has become a necessary source of information for various services, opening a bank account being one of them. One of the main reasons for linking bank account with Aadhaar card is that it eliminates frauds and safeguards financial credentials of an individual. According to the data given by UIDAI, as of now  96 crore bank accounts out of total 110 crore accounts have been linked to Aadhaar. By linking Aadhaar with bank account, one can also avail seamless refund after ITR filing.  The IT-department has made it clear that it will transfer e-filing refund in a bank account of those who have added their PAN card. Aadhaar is already needed to be linked with PAN and the CBDT has set September 2019 deadline for the same. 

Here's why Aadhaar is important for bank account -

On its website, UIDAI explains that when you link your bank account with Aadhaar card, you secure yourself because no one can impersonate you to avail these services. Often the fraudsters carry out transactions and transfer money from someone else’s account to their accounts and go untraced as they generally submit their fake identities to the bank while opening their accounts. 

These fraudsters operate bank accounts in fictitious names/companies and run shell companies’ accounts to carry out money laundering or stash black money.

Thereby, UIDAI highlights that when all the bank accounts are verified with Aadhaar card, it would not be possible for these unscrupulous elements to go untraced and banking as a whole would become more safe and secure as the identity of each bank account holders is established uniquely beyond doubt through eKYC. 

Hence, Aadhaar helps in eliminating financial losses on a bank account.