UIDAI: Aadhaar linking – Here’s why you should link your bank account, demat account and PAN
All the Aadhaar cards issued by UIDAI are encrypted with 12-digit random numbers and are important identification proof for citizens across India. Availing an Aadhaar card is very simple. Currently, the Aadhaar is not only an important information tool, but is also access to a host of services. Any individual, irrespective of age and gender, who is a resident of India, may voluntarily enrol to obtain Aadhaar number. A person willing to enrol has to provide minimal demographic and biometric information during the enrolment process which is totally free of cost. Interestingly, on its website, the Aadhaar-maker UIDAI explains to why one must link their demat account, bank account and Permanent Account Number (PAN).
According to UIDAI, when you link your bank account, demat account, mutual fund account, PAN, etc., with Aadhaar, you secure yourself because no one can impersonate you to avail these services.
This is because 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. They operate bank accounts in fictitious names/companies and run shell companies’ accounts to carry out money laundering or stash black money.
Therefore, UIDAI says, “when all the bank accounts are verified with Aadhaar then 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.”
Currently, 96 crore bank accounts out of total 110 crore accounts have been linked to Aadhaar.
Similarly, UIDAI explains that you also contribute to serving the vital national interests by making the system rid of bogus, fakes and duplicates who could misuse IDs to evade taxes, siphon off public money, etc. Through use of Aadhaar and other process improvements, the Government has been able to weed out more than 6 crore fakes, duplicates and ghosts beneficiaries and save more than Rs. 90,000 crore of public money.
Apart from this, also ghost and shell entities and companies used to be created for tax evasion, money laundering, terror financing, etc. Verification of identity through Aadhaar has helped curb these practices.
Not only eliminating fraudulent practices, but use of Aadhaar has also checked unscrupulous elements that used to resort to impersonation in various examination and tests for college admission and jobs, etc., and thereby denying the genuine candidates of their rightful dues.
Thereby, UIDAI says, “There are number of other areas where verification of identity through Aadhaar has brought in fairness and transparency in the system.”