Is Aadhar PAN linking required for opening bank account?

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The discussion explores whether linking Aadhaar and PAN is a mandatory requirement for opening a bank account, as per RBI guidelines. While submitting both cards to the bank is necessary, the specific requirement of linking them on the ITR website before account opening is debated. Although an older article suggests it's mandatory, current information indicates that while an inoperative PAN (not linked to Aadhaar) might be accepted by some banks, it's best practice to link them to avoid issues.

Akshit Jain

Akshit Jain (Querist)

11 November 2024 Do the RBI guidelines mandate the linking of PAN with Aadhar as a prerequisite for opening a bank account?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

11 November 2024 https://www.firstpost.com/business/linking-aadhaar-pan-cards-mandatory-for-opening-of-bank-accounts-under-new-kyc-guidelines-rbi-4441963.html
Actually linking both the documents to bank account is mandatory,

Akshit Jain

Akshit Jain (Querist)

11 November 2024 The question is - Is the PAN-Aadhar linking on the ITR website a prerequisite for opening an account? Both PAN and Aadhar card submitted to the bank, but the bank's objection is the PAN is not linked to Aadhar card. Also, the link you posted is from 2018 - more than 6 years old. Guidelines have kept on changing. Is there any current RBI directive/circular that PAN must be linked to Aadhar even if the applicant submits both PAN and Aadhar at the time of account opening?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

11 November 2024 The guideline is from RBI (no change to it); & the amendment is from ITD, that the PAN is inoperative if not linked to Aadhar. So, unless it is linked with Aadhar, it is not valid. Hence Banks insist to link PAN with Aadhar.

Akshit Jain

Akshit Jain (Querist)

11 November 2024 It looks like there is no RBI restriction. Banks are adopting their own policy. HDFC website clearly states that -
3. Can New customers open Account with the Bank if PAN is inoperative (not linked to Aadhaar)?
New customers can open account if the PAN status is inoperative. In case of Authorised signatory’s’ PAN being inoperative, the same shall have no impact in Authorised signatory capacity .
(Source: https://www.hdfcbank.com/personal/useful-links/important-messages/pan-aadhaar-linking)

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

12 November 2024 you can open a bank account even if your PAN is inoperative, but it depends on the bank’s policies and the type of account you're opening. For a smooth process, it is best to resolve the inoperative PAN issue as soon as possible. This can be done online through the Income Tax Department's website or at a PAN service center.

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