The Unique Identification Authority of India, or UIDAI-run Aadhaar and its importance have transcended beyond identification requirements. Although officially a voluntary and non-mandatory system, in today’s paradigm, Aadhaar and the 12-digit unique identification number that represents one’s identity play a significant role in day-to-day activities, from filling out forms to travelling in trains to operating one’s bank account.
Given the pertinence of the Union of both systems, here are 5 Benefits of linking your Aadhaar Card with your bank account.
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Identification and KYC
Something essentially very basic, fundamental, but pertinent in the day of extensive scrutiny over Know-Your-Customer or KYC policy.
This document (Aadhaar) can be used to verify and therefore complete KYC proceedings without any hassle, as it is accepted by most banks as a valid identity card, with biometric details and a photograph attached to it. Although PAN card has a photograph, it is not often treated as valid ID proof.
Welfare and Benefit Transfer
When it comes to engagement that citizens have with the governmental paradigm, Aadhaar in many ways has become the default link between the taxpayer and its accountable government.
When it comes to avenues like Direct credit of subsidies from the government for services like includes LPG, Kerosene, Sugar etc. Not just that, in rural settings government-run welfare funds and even MNREGA wages are discharged to the rightful beneficiary with the help of Aadhaar cards.
Hassle-Free ITR Filing
Aadhaar is also crucial, when it comes to using your account to pay taxes, that is, filing Income Tax Returns or ITR. This is an interconnected paradigm. Here, the primary document required to pay taxes, the Pan Card, according to the latest government mandate has to be linked to Aadhaar card, therefore making Aadhaar cards indirectly indispensable to the whole taxation system.
Fighting Financial Fraud
This identification instrument also allows the mitigation of financial fraud in the larger banking system. Many charlatans use fake identity measures to penetrate into the system to effect problems and bring about fiscal harm to unsuspecting victims.
The Aadhaar, although not a full-proof mechanism in tackling with this menace, has mitigated the fissures in the system and therefore progressed towards making a better, safer platform to carry out transactions.
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Improved Online Transactions
In the age of virtual activities, virtual banking has become the cornerstone of the larger economic growth of the 21st-century system. The cohesive functioning or the integration of bank accounts with Aadhaar allows easier and safer transactions online.
Given the access to the colossus of a biometric system, it is even more difficult to carry out fraud and do transactions without any fear of being purloined. And several of the commercial banks in the market also provide incentives for linking the two, thereby aiding the process.
